JOHN DAY — Recent layoffs at the U.S. Department of Energy have led to uncertainty regarding a $682,089 grant intended to overhaul the Grant Union Jr./Sr. High School’s heating, ventilation and air conditioning system, according to a memo from Grant School District.

The grant comes from Renew America’s Schools, a $190 million investment by the federal government focused on helping K-12 schools across the country make energy upgrades to decrease energy usage and costs, improve indoor air quality and foster healthier learning environments.

Grant School District was one of seven local education agencies in Oregon to receive the prize. Grant School District was awarded $682,089 for the first two phases of its $3.4 million HVAC project.

The Oregon Department of Education signed a cooperative agreement with Grant School District in which the district was awarded $45,455 to conduct an energy audit and preliminary planning, with an additional $636,634 for energy improvements, for a total of $682,089. The federal funding was awarded to cover 95% of the planning costs and 19% of the improvement costs of the $3.4 million project.

Grant School Superintendent Mark Witty said the school district needs to complete the HVAC project at Grant Union but funding uncertainty may lead to the district having to either delay the project for up to a year or pull funding from other sources in order to complete the work.

Until the district is forced to make that decision, they are calling upon elected officials at the Department of Energy and the Department of Education to take immediate action to expedite the reimbursement of costs already incurred by the district under the Renew America’s Schools grant program, provide clear communication on the status of the program and ensure all dedicated staff are in place to administer the funds and honor the full commitment of the grant agreement and establish a clear process for future communications and disbursement of funds to protect all rural school districts from similar situations.

Grant School District has already incurred costs for planning, an energy audit, equipment, contracting and six months of labor before being informed that there is a possibility that there will not be any funding dispersed under this program due to changes made by the new presidential administration.

The memo said staff at the Department of Energy responsible for implementing the program have been impacted by recent layoffs, which resulted in a lack of communication and processing of reimbursements. The grant agreement expires in September of 2025 and requires a second agreement for additional improvements.

That second agreement is now at risk due to a lack of staffing and uncertainty about the availability and accessibility of funds Congress appropriated for this program.

Short and long-term concerns

Grant School District is a rural/frontier school district tucked in one of Oregon’s most economically distressed communities.

Without reimbursement, the district will be fully responsible for costs and may end up indebted and unable to complete the project. The district also has liabilities to its general contractor, who hired staff and local subcontractors, in addition to taking out performance and improvement bonds to bid on the project according to the memo.

“To stop work on a project of this size due to the uncertainty of the federal government’s recent policy changes will create significant financial harm to the district,” the memo stated.

Long-term impacts include decreased student performance and concentration due to inconsistent temperatures, poor air quality and noise levels. The district could be forced to make painful decisions like diverting funds from critical areas like education programs, teacher salaries or essential maintenance.

The district has experienced a 60% decline in enrollment since 1998. The inability to modernize school facilities may lead to continued decline as families decide to relocate to areas with better-equipped schools.

The outdated HVAC systems may not meet current air filtration and circulation standards, potentially putting the health of students and staff at risk.

Grant Union Jr./Sr. High School’s HVAC system was built in the 1930s and is long past its expected lifespan, according to Witty.

Humbolt Elementary’s HVAC system was upgraded prior to the start of the 2024-25 school year and it completely changed the environment there. Instead of wondering about the temperature within classrooms, the attention of students and teachers has shifted to education.

Witty would like to see the same at Grant Union. As the memo outlines, however, time is of the essence.

“The clock is ticking. Every day puts our district at greater financial risk and denies our students the safe, efficient and modern learning environment they need,” the memo states. “We cannot afford to let political promises derail a project critical to our schools and community’s future.”