How to Fund Your HVAC Upgrades

Making the most of grants and federal programs for healthier schools

The Funding Landscape

We all want our teachers and students to work in a safe and comfortable environment. That means having infrastructure in place that is dependable — systems that work the way they are supposed to, when they are supposed to. Modern HVAC systems safeguard indoor air quality (IAQ), support energy efficiency, and protect learning continuity. Yet cost remains a major barrier for school districts when it’s time to upgrade.

Federal and state programs, including ESSER I–III (Elementary and Secondary School Emergency Relief Fund) and newer allocations under the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA), offer substantial support for upgrades that improve IAQ and energy performance.

Learn more:

U.S. Department of Education

U.S. Department of Energy

Understanding ESSER Funding

The ESSER program was created to help schools respond to COVID-19 and its impacts on learning conditions. Allowable uses include:

    • Improving ventilation and filtration
    • Upgrading HVAC controls for IAQ and energy efficiency
    • Monitoring CO₂ and humidity to reduce transmission risk

ESSER III funds must be obligated by September 30, 2026, making now an ideal time to plan projects that address both comfort and compliance.

See ventilation guidance from the U.S. Department of Education.

Funding Tip: Bundle projects. Pairing HVAC controls with lighting or sensor upgrades can qualify under multiple program categories and improve return on investment.

Other Available Programs

Inflation Reduction Act (IRA)
Provides tax credits and rebates for energy-efficient equipment and controls. Public entities may use “direct pay” provisions to receive benefits without tax liability.

Efficient and Healthy Schools Campaign
A collaboration between DOE and EPA recognizing districts that implement high-performance HVAC strategies.

State Energy Offices & Utility Rebates
Many utilities offer cash incentives for verified energy savings or demand reduction.

Integrating these resources creates a multi-layered funding strategy that reduces the burden on district budgets.

For Administrators: Building a Strong Proposal

Strong proposals typically include:

Define the need
Use data from energy audits or IAQ assessments to identify specific issues such as high CO₂ levels, aging equipment, or rising maintenance costs.

Quantify benefits
Translate efficiency gains into financial savings and documented learning benefits.
See EPA research on IAQ and student performance.

Align with funding goals
Frame projects around health, safety, and sustainability objectives outlined in grant criteria.

Show implementation capacity
Include vendor partnerships, timelines, and measurable performance metrics.

A well-documented proposal demonstrates how each dollar supports both immediate health benefits and long-term operational savings.

For Facility Managers: Planning for Success

Facility teams play a crucial role in execution. Focus on projects that combine IAQ improvements with operational efficiency:

    • Smart controls that automate scheduling and monitoring
    • Airflow measurement to verify ventilation performance
    • Open-protocol systems that integrate existing equipment (BACnet, Modbus, etc.)
    • Remote management to reduce travel and response time between schools

Tools such as KMC Commander® and TrueFit® AFMS help districts monitor airflow and energy performance in real time, providing the data needed for post-funding reporting and compliance.

Why KMC Controls

KMC Controls offers open, scalable solutions that align with federal and state funding priorities for IAQ and energy efficiency. Products including KMC Commander, TrueFit AFMS, and KMC FlexStat™ enable districts to collect, analyze, and verify the data required to demonstrate funding impact.

With U.S.-based manufacturing and nationwide partner support, KMC Controls helps schools upgrade strategically — not just quickly.

Good data supports good funding decisions. And good funding decisions support healthy schools.

Learn More

👉 Explore KMC Controls K–12 Solutions
https://www.kmccontrols.com/solutions/schools-k-12/

👉 Find a Partner Near You
https://www.kmccontrols.com/contact/find-a-partner/

Many thanks to Jesse Shoemaker’s expertise in editing this article. Jesse serves as the Vice President of Business Development at KMC Controls.