Requires States to use at least 50 percent of such funds for loans to enable State, regional, or local entities to make annual interest payments on certain qualified school construction bonds they issue. Allows States to use up to 50 percent of such funds to support State revolving fund programs or other State-administered programs that assist such entities to pay for certain construction, rehabilitation, repair, or acquisition costs, with priority for projects for schools with the greatest need.
Sets forth requirements for loan repayment and interest rate. Exempts a State from repayment and interest rate accrual before January 1, 2007, unless the amount appropriated to carry out assistance for education of all children with disabilities under the Individuals with Disabilities Education Act for any fiscal year before FY 2007 is sufficient to fully fund such assistance for the fiscal year at the originally promised level, which promised level would provide to each State 40 percent of the average per-pupil expenditure for providing special education and related services for each child with a disability in the State.
Directs the Secretaries of the Treasury and of Education to ensure that funds are used only to pay for the interest on qualified school construction bonds or for certain other costs. Denies the Secretaries authority to approve or disapprove school construction plans assisted under this Act, except to ensure that funds under this Act are used only to supplement, and not supplant, the amount of school construction, rehabilitation, and repair in the State that would have occurred in the absence of such funds.