DOE Announces $100M to Modernize School HVAC Systems

The Department of Energy is making up to $100 million available to help public schools reduce operating costs through HVAC, ventilation, building controls and other facility improvements.

Key Facts

  • A+STEPS is part of DOE’s $500 million Renew America’s Schools Program.
  • Eligible early improvements may include energy audits, HVAC ventilation, building controls, envelope retrofits, and electrical upgrades.
  • HVAC contractors can monitor hub selections and the upcoming district process for potential K–12 project opportunities.

WASHINGTON — The U.S. Department of Energy (DOE) has announced up to $100 million in funding to help public school districts reduce energy costs and modernize building infrastructure. The initiative includes funding for HVAC ventilation, building controls, and other facility improvements.

Announced Oct. 27 by DOE's Office of Critical Minerals and Energy Innovation (CMEI), the Affordability + Strategic Energy Pathways for Schools (A+STEPS) initiative will establish regional hubs. These hubs will provide technical assistance, workforce training, and strategic energy planning for school districts.

A+STEPS is part of the $500 million Renew America's Schools Program. The broader program supports energy improvements at K–12 public schools nationwide.

DOE anticipates selecting four to eight regional hubs during the initiative's first phase. Each hub will receive $2 million to $5 million per funding round.

The hubs will train school facility staff, coordinate technical providers, and provide districts with planning tools and data. They will also help districts develop strategic energy plans, identify financing opportunities, and access project-development assistance.

Schools and local education agencies will be eligible for up to $250,000 for early building improvements. Eligible projects may include:

  • Building energy audits;
  • HVAC ventilation and building controls;
  • Building envelope retrofits;
  • Electrical infrastructure upgrades;
  • Electrical load studies; and
  • Building monitoring analytics.

According to DOE, the initiative aims to reduce facility operating costs, improve the reliability of essential building systems, and create healthier learning environments.

DOE expects applications for regional hubs to open in November 2026. Application instructions will be posted on the A+STEPS opportunity webpage.

School districts and local education agencies should not apply for regional hub funding at this stage. DOE plans to announce a separate Expression of Interest form for those organizations in 2027, after selecting the regional hubs.

EnergyWerx manages A+STEPS in partnership with DOE through a Partnership Intermediary Agreement established by DOE's Office of Technology Commercialization.

The DOE's $100 million school energy initiative creates an opportunity for HVAC contractors to pursue projects in the K–12 market. Contractors with experience in commercial building modernization should monitor the regional hub selections and upcoming 2027 school district participation process to identify potential project opportunities.

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