This bill establishes the School Ventilation and Energy Efficiency Grant Program within the Department of Education, aimed at improving air quality and energy efficiency in school buildings by repairing, maintaining, upgrading, replacing, and installing heating, ventilation, and air conditioning systems in non-SDA districts. The Department of Education will create an application process for school districts to apply for grants, which will be disbursed by the Schools Development Authority. The Commissioner of Education will set ventilation and filtration standards for the systems funded by the grants and will prioritize projects in underserved communities where at least 50 percent of students qualify for free or reduced-price meals.

The bill appropriates $500 million from the General Fund to the Regular Operating District Construction and Maintenance Grants Fund to support this program. Grants will cover up to 75 percent of project costs, with the state share determined by the final eligible costs and the district aid percentage or a minimum of 40 percent, whichever is greater. However, state funding will only begin once the district secures financing for its local share. The act is set to take effect immediately upon passage.