Democrats did not win support for a new federal role in school construction and repair.
The next round of school construction began in May 1897.
The money can, however, be used for new school construction, which is being trimmed to $642 million from $2 billion over the next three years.
He also said the district needed more state money for school construction.
State officials estimate that about $3 billion a year is needed for school construction.
By 2005, he said, the majority of spending will be for urban school construction.
He has all but abandoned a plan to use some of the money for school construction.
Most of it is scheduled to pay for school construction.
He also secured more than $650 million for new school construction.
"We're really not doing anything if we don't deal with school construction."