34 CFR §222.172

1. (a)An LEA may use emergency grant funds received under this program only to repair, renovate, alter, and, in the limited circumstances described in paragraph (c) of this section, replace a public elementary or secondary school facility used for free public education to ensure the health and safety of students and personnel, including providing accessibility for the disabled as part of a larger project.
2. (b)An LEA may use modernization grant funds received under this program only to renovate, alter, retrofit, extend, and, in the limited circumstances described in paragraph (c) of this section, replace a public elementary or secondary school facility used for free public education to provide school facilities that support a contemporary educational program for the LEA's students at normal capacity, and in accordance with the laws, standards, or common practices in the LEA's State.
3. (c)
   1. (1)An emergency or modernization grant under this program may be used for the construction of a new school facility but only if the Secretary determines—
      1. (i)That the LEA holds title to the existing facility for which funding is requested; and
      2. (ii)In consultation with the grantee, that partial or complete replacement of the facility would be less expensive or more cost-effective than improving the existing facility.
   2. (2)When construction of a new school facility is permitted, emergency and modernization funds may be used only for a new school facility that is used for free public education. These funds may be used for the—
      1. (i)Construction of instructional, resource, food service, and general or administrative support areas, so long as they are a part of the instructional facility; and
      2. (ii)Purchase of initial equipment or machinery, and initial utility connections.