The USDA is awarding the Confederated Tribes of Warm Springs at 6.8 million dollar loan for the construction.

It's part of the Obama Administration's new push to invest in education  -- especially in rural areas to raise graduation rates so we can better compete on the global stage.

Vicki Walker is Oregon's State Director for USDA Rural Development.

"If the soverign tribal nations are doing well economically, we're all doing well economincally.  We know that and we embrace that and it's great to be part of something  that is offering real money and moving them forward on the reservation."

The new K-8 school will replace one that is 83 years old.

Construction is slated to start next month and should be done by the fall of 2014.