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Economic Stimulus Facts

2009 American Recovery and Reinvestment Act

On Tuesday, February 17, 2009, President Barack Obama signed the 2009 American Recovery and Reinvestment Act into law. This economic stimulus bill gives schools new financial resources to provide services, upgrade technology, outfit labs, and address other pressing needs. In many cases, these dollars must be spent soon or immediately. The table below highlights those areas of education slated to receive funds. Note that all the funding allocations on this page flow through already authorized programs, such as Title I and IDEA, and will use the same allocation mechanisms and regulations already in place.

MDR Webinar: Understanding Stimulus Funding in the Education Market
New! Stimulus Selects
MDR's Stimulus Fact Sheet
American Recovery and Reinvestment Act
U.S. Department of Education
NEA State-by-State Funding Guide
Education Market/Funding Programs Funding Dollars
K-12 Education (Administered by the Department of Education)
Elementary and Secondary Education Act (ESEA) $13 billion total
To carry out Title I of the Elementary and Secondary Education Act of 1965 (ESEA), allocated as follows:
   Grants to Local Education Agencies (Title I-A) $10 billion
   School Improvement Grants (Section 1003g) $3 billion
Additional Money
   Impact Aid Construction (Title VIII) $100 million
   Educational Technology State Grants (Title II-D) $650 million
   Education for Homeless Children & Youths (Title VII) $70 million
   Teacher Incentive Fund (ESEA Title V-D-1) $200 million
   Statewide Data System $250 million
Individuals with Disabilities Education Act (IDEA) (Special Education)
   Special Ed Grants to States $10.3 billion
   Special Ed Preschool Grants $400 million
   Special Ed Grants for Infants & Families $300 million
Higher Education
Federal Pell Grants (HEA IV-a-1) $17.1 billion
Federal Work Study (HEA-IV-C) $200 million
Teacher Quality Enhancement (HEA II-A) $100 million
Preschool (Administered by Administration for Children and Families)
Head Start $1 billion
Early Head Start $1.1 billion
Child Care & Development Block Grants $2 billion
School Construction Bonds
Qualified School Construction Bonds (ARRA) $22.4 billion
Qualified Zone Academy Bonds $  2.4 billion
Other Potential Funding Sources
Competitive grants for expanding public computer center capacity, including community colleges and public libraries (part of the Broadband Technology Opportunity Program, administered by the National Telecommunications and Information Administration) $200 million
Competitive grants* for worker training and placement in high growth and emerging industry sectors (*may be awarded to an institution of higher education or other eligible training provider, administered by the Department of Labor) $700 million
State Fiscal Stabilization Fund
Total Allocation $53.6 billion

Purpose: To provide the amount of funds, through the state’s primary elementary and secondary funding formulae, that is needed to restore, in each of fiscal years 2009, 2010, and 2011, the level of state support provided through such formulae to the greater of the fiscal year 2008 or fiscal year 2009 level.

Allocated as follows:

 

Elementary, Secondary, and Postsecondary Ed

These grants will be made by the Secretary of Education to the Governors, who are to allocate 61% on the basis of their relative population of individuals aged 5 through 24 and 39% on the basis of their relative total population.

$39.5 billion

Public Safety and Other Services

May include assistance for K-12 and public institutions of higher education and for modernization, renovation, or repair of public school facilities and institutions of higher education facilities, including activities consistent with a recognized green building rating system.

In general, local education agencies may use these funds for any activity authorized by ESEA, IDEA, the Adult and Family Literacy Act, or the Carl D. Perkins Career and Technical Education Act of 2006 or for modernization, renovation, or repair of school facilities.

$8.8 billion

State Incentive Grants

This money is reserved for use by the Secretary of Education to reward states that have made significant progress in ensuring that students continue making progress toward meeting the state’s student academic achievement standards, improving graduation rates, and achieving equity in teacher distribution.

$4.35 billion

Innovation Fund

This money is reserved for use by the Secretary of Education to reward states that have made significant gains in closing the achievement gap. The award-winning entities may use the funds to expand their work and serve as models for best practice, to allow them to work in partnership with the private sector and philanthropic community, and to identify and document best practice that can be shared and taken to scale based on demonstrated success.

$650 million

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