Funding Overview

The American Recovery and Reinvestment Act of 2009 (Recovery Act) was signed into law by President Obama on February 17th, 2009

The goals of the ARRA are to stimulate the economy in the short term and invest in education and other essential public services to ensure long-term economic health. This stimulus bill will make new financial resources available to state educational agencies (SEA), and through them, to local educational agencies (LEA) such as school districts and schools. This is a one-time allocation to benefit those schools, administrators, teachers, students and parents, who are most in need of assistance.

Note that all the following funding allocations flow through already authorized programs, such as Title I and IDEA, and will use the same allocation mechanisms and regulations already in place.

Funding Categories	Amount	Funding for ELLs
Title I - Formula grants	$10 billion
Title I - School Improvement	$3 billion
Title I - Impact Aid Construction	$100 million
IDEA - Special Education	$11.7 billion
Early Head Start	$1.1 billion
Head Start	$1 billion
Title II, D - EETT	$650 million
McKinley-Vento Homeless Assistance Act	$70 million
Teacher Incentive Fund	$200 million
State Fiscal Stabilization Fund - Education Funding Public Elementary, Secondary, and Institutions of Higher Education	$39.7 billion
State Fiscal Stabilization Fund - Education, School Modernization, Public Safety, or other Government Services.	$8.8 billion
State Incentive Grants -"Race to the Top" and "What Works and Innovation" funds	$5 billion

K-12 Education (Administered by the Department of Education)

Title I ($13 billion total)

Title I funds help disadvantaged children and youth to meet or exceed high academic state standards.

• Grants to Local Education Agencies (Title I-A) $10 billion
• School Improvement Grants (Section 1003g) $3 billion

Find more information and district-level information at the Department of Education website:

• Department of Education Title I Fact Sheet
• Department of Education Title I Guidance

Individuals with Disabilities Education Act (IDEA) ($12 billion total)

IDEA funds serve students with disabilities, ensuring that they have access to a free appropriate public education to meet their unique needs and prepare them for further education, employment, and independent living.

• Special Ed Grants to States $10.3 billion
• Special Ed Preschool Grants $400 million
• Special Ed Grants for Infants & Families $300 million

Find more information and district-level information at the Department of Education website:

• The Department of Education IDEA Part B Fact Sheet
• The Department of Education IDEA Part B Guidance (PDF)
• The Department of Education IDEA Part C Fact Sheet
• The Department of Education IDEA Part C Guidance (PDF)

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

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 $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

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

State Fiscal Stabilization Fund (Total $53.6 billion)

To provide the amount of funds, through the state's primary elementary and secondary funding formulae, to restore state support for education and other public services.

• Elementary, Secondary, and Postsecondary Ed - $39.5 billion
  Exchange for a commitment to advance education reforms to benefit students, and to stabilize state/local government budgets to restore support for education.
• Public Safety and Other Services (School Modernization and Others)- $8.8 billion
  In general, LEAs 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.
• State Incentive Grants (Total $5 billion)
  This includes a $4.35 billion "Race to the Top" State Incentive fund to help states with bold plans to improve student achievement-including the four Assurances—and $650 million to assist school districts and non—profit organizations with strong track records of improving student achievement.

Find more information and district-level information at The Department of Education website:

• The Department of Education State Fiscal Stabilization Fund Fact Sheet
• The Department of Education State Fiscal Stabilization Fund Letter to Governors (PDF)
• The Department of Education State Fiscal Stabilization Fund Guidance (PDF)