(1) From the school consolidation and infrastructure fund money appropriated in section 11, there is allocated for 2025-2026 only an amount estimated at $100,000,000.00 for grants to districts and intermediate districts for infrastructure needs as described in this section.

    (2) Districts and intermediate districts must apply on a competitive basis for funding in a form and manner determined by the department.

    (3) If the amount allocated under subsection (1) is insufficient to fully fund awards under this section, there is appropriated from the school consolidation and infrastructure fund described in section 11x the amount necessary to fully fund these awards, or the maximum available in the fund, whichever is less. The state budget director shall provide notification to the house and senate appropriations subcommittees on school aid and the house and senate fiscal agencies regarding any additional appropriation described in this subsection.

    (4) The department shall prioritize applications from districts and intermediate districts that meet any of the following criteria:

    (a) Are in an opportunity index band, as described in section 31a, of 4 or higher.

    (b) Are an intermediate district for which the percentage of pupils in membership who were determined to be economically disadvantaged in the immediately preceding fiscal year is equal to or greater than the minimum percentage for a district or public school academy to be in an opportunity index band, as described in section 31a, of 4 or higher.

    (c) Have infrastructure needs related to HVAC systems or roofing.

    (d) Have no ability to issue bonds for infrastructure needs, or have made a good-faith effort, as determined by the department, to issue bonds for infrastructure needs.

    (5) Funds awarded in subsection (4) may be used only to address infrastructure needs that were identified in the statewide school facilities study issued pursuant to section 11y.

    (6) The funds allocated under this section for 2025-2026 are a work project appropriation, and any unexpended funds for 2025-2026 are carried forward into 2026-2027. The purpose of the work project is to fund district and intermediate district infrastructure needs. The estimated completion date of the work project is September 30, 2030.

    (7) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.