The impact of four basic capital project funding models for state participation was determined for the school districts in Texas. A review of the historical background for funding of capital projects and improvements by states was followed by a review of the historical background of state support for funding capital projects in the State of Texas. Additionally, the current funding models and methods of determining need were reviewed for all of the states. This historical review revealed that facility funding, like aid for maintenance and operation, has evolved with all the states at different stages.