The 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.

To support this initiative, the bill appropriates $500 million from the General Fund to the Regular Operating District Construction and Maintenance Grants Fund, which will finance up to 75 percent of the costs for selected projects. The State's financial contribution will be determined by the final eligible costs of the projects and the district aid percentage, with a minimum of 40 percent. However, the State's funding will only begin once the district has secured financing for its local share. The bill is set to take effect immediately upon passage.