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Facts about ARRA


We are here to support you during this time.  If you have any questions or would like more information please contact us at 518-399-2776 or info@LeaderEd.com. This information will be updated as new information is released.

The American Recovery and Reinvestment Act: What it means to America’s education system?

The goal of the American Recovery and Reinvestment Act of 2009 (ARRA) is to stimulate the economy in the short-term and invest in education and other essential public services to ensure long-term economic health of our nation,” through “shared commitment and responsibility.”

Educators are urged to use ARRA funds quickly and wisely, and use them “to strengthen education, drive reforms, and improve results for students from early learning through post-secondary education.”

ARRA funds should be used to improve student achievement and close the achievement gap by:

  • Adopting rigorous college- and career-ready standards and high-quality assessments
  • Establishing data systems and using data for improvement
  • Increasing teacher effectiveness and equitable distribution of effective teachers
  • Turning around the lowest-performing schools
  • Improving results for all students, including early childhood learning, extended learning time, use of technology, preparation for college, and school modernization

ARRA includes more than $100 billion in additional federal funds for preK-12 education and early childhood programs. Below, you'll find more specifics about the education portions of the American Recovery and Reinvestment Act (ARRA).

Please visit the following sites for additional information:

Education for the Disadvantaged (Title I)

$13 Billion is included for the Education for the Disadvantaged portion of the Bill. The total amount includes $10 Billion in Title I formula grants and $3 Billion for School Improvement grants. 40 percent of this amount will be directed to middle and high schools.

Of the $10 Billion in Title I formula grants, $5 Billion will be allocated through the targeted formula and the same amount should be allocated through the education finance incentive grant formula. Some of the funding provided is intended for Early Childhood Programs and activities.

For more information and district-level information on Title I funding, please visit Ed.gov/recovery.

More information on programs and services that are eligible for Title I funding, and how the International Center can help.

Special Education (IDEA)

ARRA includes $12.2 Billion for the Special Education account. As part of IDEA funding, ARRA includes $400 million for Grants to Infants and Families and $500 million for Early Intervention in Pre-K.

For more information on state and district allocations for Special Education, please visit ed.gov/recovery.

More information on programs and services that are eligible for IDEA funding , and how the International Center can help.

State Fiscal Stabilization Fund (Title XIV)

ARRA provides $53.6 billion for a State Fiscal Stabilization Fund. The economic recovery bill includes these funds in order to provide fiscal relief to the States to prevent tax increases and cutbacks in critical education and other services.

ARRA provides that school districts receiving Stabilization funds may only use the funds for activities authorized under the Elementary and Secondary Education Act (ESEA), the Individuals with Disabilities Act (IDEA), the Carl D. Perkins Career and Technical Education Act of 2006 (Perkins), the Adult & Family Literacy Act.

ARRA requires that Governors will submit applications in order to receive Stabilization funds, which will include certain assurances, provide baseline data regarding each of the areas described in such assurances, and describe how States intend to use their allocations.

States will:

  • In each of fiscal years 2009, 2010, and 2011, maintain State support for elementary, secondary, and public post-secondary education at least at the levels in fiscal year 2006.  The Secretary of Education may waive or modify any requirement of this title relating to maintenance of effort, for States and school districts that have experienced a precipitous decline in financial resources.
  • Address 3 key areas: achieve equity in teacher distribution, establish a longitudinal data system that includes the elements described in the America COMPETES Act, and enhance the quality of academic assessments relating to English language learners and students with disabilities.
  • Through the State's Governor, submit an application that describes the State's progress in each of the assurances and how the State would use grant funding to continue making progress toward meeting the State's student academic achievement standards.

Allocation of State Stabilization funds:

  • ARRA requires Governors to use at least 83 percent (nearly $40.1 Billion) of its State allocation to support elementary, secondary, and higher education. The funding received must first be used to restore State aid to school districts under the State's primary elementary and secondary education funding formulae to the greater of the fiscal year 2008 or 2009 level in each of fiscal years 2009, 2010, and 2011 and, where applicable, to allow existing formula increases for elementary and secondary education for fiscal years 2010 and 2011 to be implemented; and to restore State support to public institutions of higher education to the greater of the fiscal year 2008 or fiscal year 2009 level, to the extent feasible given available Stabilization funds.
  • ARRA authorizes the Secretary of Education to award, in fiscal year 2010, $4.3 Billion in State Incentive Grants to States that have made significant progress in achieving equity in teacher distribution, establishing a longitudinal data system, and enhancing assessments for English language learners and students with disabilities. Each State receiving an Incentive Grant will use at least 50 percent of its grant to provide school districts with subgrants based on their most recent relative Title I allocations.
  • ARRA authorizes up to $650 Million for an Innovation Fund, awarded by the Secretary of Education, which will consist of academic achievement awards to recognize school districts, or partnerships between nonprofit organizations and State educational agencies, school districts, or one or more schools that have made achievement gains.
  • ARRA also provides that Governors may use up to 17 percent ($8.21 Billion) of State allocations for public safety and other government services, which may include education services and higher education modernization, renovation and repair activities.