Traditionally, financing the construction of school facilities has been a local responsibility. In the past several decades, states have increased their support for school facilities. Using data collected from various sources, this study first classifies the design of capital aid programs in all 50 states into various categories based on the scope of state aid, selection of capital projects, method of grant distribution, and formula components of the grant. The condition of school facilities has increasingly become a concern of school finance litigation in recent years. The equitable distribution of capital-outlay funds is likely to receive additional notice in the future. Using NCES finance data from 1998 to 2002, we examine the relationship between the type of facilities aid program and the level of inequality in capital-outlay distribution in the states. (Contains 7 tables and 12 footnotes.)