Education Secretary Michael Gove will announce the cuts over the next five years by putting on hold the Building Schools for the Future (BSF) programme, set up by Labour.
The government currently spends £3 million on the BSF scheme annually, and cuts are expected to save more than half that amount.
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Mr Gove is also expected to announce the education budget will be cut by £1 billion.
The plan was knocked by Shadow Education Secretary Ed Balls who said it would hit construction jobs and deprive schools of new accommodation.
As well as the £1 billion cut from the BSF scheme, a further £265 million will be axed from the Department for Business, £220 million from local government and £55 million from the Home Office.
(CD/KMcA)
