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ARRA funding overview
The success of the education portion of the American Recovery and Reinvestment Act
(ARRA) will depend on the shared commitment and responsibility of all stakeholders
throughout the education community. Collectively, we must advance ARRA’s short-term
economic goals by providing clear guidance for early investment, and we must support
ARRA’s long-term economic goals by investing wisely – using these funds to strengthen
education, drive reforms, and improve results for students from pre-kindergarten
through college.
A Historic, One-time Investment
- Over $100 billion education investment
- Historic opportunity to stimulate economy and improve education
- Success depends on leadership, judgment, coordination, and communication
Guiding Principles

The overall goal is to stimulate the economy in the short-term and invest wisely
– using these funds to improve schools, raise achievement, drive reforms and produce
better results for children and young people for the long-term health of our nation.
Four principles guide the distribution and use of ARRA funds:
- Spend funds quickly to save and create jobs. ARRA funds will be distributed
quickly to states, local educational agencies and other entities in order to avert
layoffs, create and save jobs and improve student achievement. States and LEAs in
turn are urged to move rapidly to develop plans for using funds, consistent with
the law’s reporting and accountability requirements, and to promptly begin spending
funds to help drive the nation’s economic recovery.
- Ensure transparency, reporting and accountability. To prevent fraud and abuse,
support the most effective uses of ARRA funds, and accurately measure and track
results, recipients must publicly report on how funds are used. Due to the unprecedented
scope and importance of this investment, ARRA funds are subject to additional and
more rigorous reporting requirements than normally apply to grant recipients.
- Invest one-time ARRA funds thoughtfully to minimize the “funding cliff.”
ARRA represents a historic infusion of funds that is expected to be temporary. Depending
on the program, these funds are available for only two to three years. These funds
should be invested in ways that do not result in unsustainable continuing commitments
after the funding expires.
- Improve student achievement through school improvement and reform. To close
the achievement gap and help students from all backgrounds achieve high standards.
Advance Core Reforms: Assurances

States must address
four specific areas identified in ARRA that evidence
shows make a critical contribution to student results:
- Making progress toward rigorous college- and career-ready standards and high-quality
assessments that are valid and reliable for all students, including English language
learners and students with disabilities;
- Establishing pre-K-to college and career data systems that track progress and foster
continuous improvement;
- Making improvements in teacher effectiveness and in the equitable distribution of
qualified teachers for all students, particularly students who are most in need;
- Providing intensive support and effective interventions for the lowest-performing
schools.
$44 Billion Available in April 2009
- State Stabilization - $32.5 billion (67% based on approvable application)
- Available April 1
- IDEA, Parts B & C - $6.1 billion (50%)
- Title I, Part A - $5 billion (50%)
- Vocational Rehabilitation - $270 million (50%)
- Independent Living - $52.5 million (100% of formula monies; $87.5 million in competitive
grants to follow)
- Available April 10
- Homeless Youth - $70 million (100%)
- Impact Aid - $40 million (100% of formula monies; $60 million in competitive grants
to follow)
Additional $49 Billion Becomes Available between Summer and Fall 2009
- Pell & Work Study - $17.3 billion (100%)
- State Stabilization - $16.1 billion (33%)
- IDEA , Parts B & C - $6.1 billion in (50%)
- Title I, Part A - $5 billion (50%)
- Title I School Improvement - $3 billion (100%)
- Enhancing Education through Technology - $650 million (100%)
- Vocational Rehabilitation - $270 million (50%)
- Statewide Data Systems - $250 million (100%)
- Teacher Incentive Fund - $200 million (100%)
Balance Speed and Effectiveness
- Balance speed and stimulus with careful planning and effective reforms
- States should award funds to LEAs as quickly as is prudent and LEAs should use funds
expeditiously but sensibly
- LEA obligation timelines:
- SFSF - the Department strongly encourages governors to award or otherwise commit
program funds as soon as possible after receipt of their grant awards. However,
funds are available for obligation at the State and local levels until Sept. 30,
2011.
- Title I - the Department encourages States to award Title I, Part A recovery funds
to their LEAs as quickly as possible, consistent with prudent management, so that
LEAs can begin using the funds. Similarly, an LEA should use its Title I, Part A
recovery funds expeditiously but sensibly. Note that, in the absence of a waiver,
an LEA must obligate at least 85 percent of its total FY 2009 Title I, Part A funds
(including ARRA funds) by Sept. 30, 2010. Any remaining FY 2009 Title I, Part A
funds will be available for obligation until Sept. 30, 2011.
- Similarly, an LEA should use the IDEA recovery funds expeditiously. A State should
make the Part B Grants to States and Preschool Grants recovery funds that it receives
in March available to LEAs by the end of April 2009. Similarly, an LEA should use
the IDEA recovery funds expeditiously. An LEA should obligate the majority of these
funds during school years 2008–09 and 2009–10 and the remainder during school year
2010–11. States may begin obligating IDEA, Part B recovery funds immediately upon
the effective date of the grant. All IDEA recovery funds must be obligated by Sept.
30, 2011.
Short-term Investments that Produce Lasting Results; Avoid “The Cliff”
ARRA represents an historic infusion of funds that is expected to be temporary.
Depending on the program, these funds are available for only two to three years.
To the maximum extent possible, these funds should be invested in ways that do not
result in unsustainable continuing commitments after the funding expires.
- Maximize short-term investments with lasting results for:
- students
- teacher, school, and district capacity for improvement
- Minimize unsustainable ongoing commitments
- Integrate coherent improvement strategies that are aligned with the core reform
goals
ARRA represents an historic infusion of funds that is expected to be temporary.
Depending on the program, these funds are available for only two to three years.
To the maximum extent possible, these funds should be invested in ways that do not
result in unsustainable continuing commitments after the funding expires.
Significant Impact on High Needs Schools’ Budgets
ARRA funds provide significant additional funds to LEA FY 09 budgets
- This chart shows estimated amounts of funding for a high needs schools’ budgets.
ARRA represents a potentially substantial supplement to FY 09 budgets through ARRA
School Improvement Grants, ARRA IDEA, ARRA Title I, and ARRA Stabilization
Data Metrics for the Four Assurances
Recognizing that the federal notice will provide further detail and an opportunity
to comment, we are providing an overview below of the specific metrics that have
been developed and are in process of being published for comment in the Federal
Register:
Teacher effectiveness and ensuring that all schools have highly qualified teachers
– A state would report on the extent to which all students have access to qualified
and effective teachers and whether or not teachers are evaluated based on how well
their students perform. More specifically, a state would report:
- the number and percent of teachers in the highest-poverty and lowest-poverty schools
in the state who are highly qualified;
- the number and percent of teachers and principals rated at each performance level
in each local educational agency’s (LEA’s) teacher evaluation system; and
- the number and percent of LEA teacher and principal evaluation systems that require
evidence of student achievement outcomes.
Higher standards and rigorous assessments that will improve both teaching and learning
– A state would report the extent to which public information is available regarding
student performance compared to other states, the extent to which all students are
fully included in state assessment and accountability systems and are provided high-quality
assessments, and how many high school seniors continue on to pursue a college education
or technical training. To this end, states would report: the most recent state reading
and mathematics NAEP scores on 2009-10 State Report Cards;
- whether the state is taking steps to enhance the quality of state academic assessments,
including whether the state is engaged in activities consistent with section 6112(a)
of the ESEA to
- work in collaboration or consortia with other states or organizations to improve
the quality, validity, and reliability of state academic assessments;
- measure student academic achievement using multiple measures of academic achievement
from multiple sources;
- chart student progress over time; and
- evaluate student academic achievement using comprehensive instruments, such as performance
and technology-based assessments;
- whether the state has developed and implemented valid and reliable assessments for
students with disabilities and the percent of students with disabilities tested
on state mathematics and English Language Arts (ELA) assessments;
- whether the state has developed and implemented valid and reliable assessment for
English language learners and the percent of English language learners tested on
state mathematics and ELA assessments;
- and the number and percentage of students by school who graduate high school and
go on to complete at least one year’s worth of college credit (as applicable to
a degree) within two years.
Intensive support, effective interventions, and improved achievement in schools that
need it the most – A state would identify schools most in need of academic
intervention, and report on the progress of those schools in implementing reforms
to improve student academic achievement. More specifically, a state would report:
- The number of schools in restructuring status that have demonstrated substantial
gains in student achievement, closed, or consolidated within last three years
- Of the schools in restructuring status, the number of schools in the bottom five
percent that have demonstrated substantial gains in student achievement, closed
or consolidated within the last three years
- The number and percent of schools in restructuring status that have made progress
on state assessments in mathematics and ELA in last year; and whether the state
allows charter schools and whether there is a cap restricting the number of such
schools, the number of charter schools currently operating in the state, and the
number of charter schools closed within the last three years for academic purposes.
Better information to educators and the public, to address the individual needs of
students and improve teacher performance – A state would report on the extent
to which it has implemented a system to provide greater clarity to parents about
the quality of their child’s education. This system will enable educators to use
real time information about the individual needs of students, move away from a one-size-fits-all
approach to education, and improve their performance. In particular, a state would
report:
- progress towards implementing a statewide data system which includes each of the
12 elements described in the America COMPETES Act, to track progress of individual
students, from preschool through postsecondary education, and match students to
individual teachers
- whether all teachers in mathematics and ELA in tested grades receive timely data
on the performance of their students and estimates of individual teacher impact
on student achievement, in a manner that informs instruction and includes appropriate
benchmarks.
Accountability and Transparency
The President and Congress are committed to ensuring that ARRA dollars are spent
with an unprecedented level of transparency and accountability. Therefore, States
and LEAs that receive recovery funds should expect to report on how those funds
were spent and the results of those expenditures.
- All ARRA funds must be tracked separately
- Quarterly reports on both financial information and how funds are being used
- Estimated number of jobs created
- Subcontracts and sub-grants required to comply with the Federal Funding Accountability
and Transparency Act
- Reporting template being developed for use by States to capture required information
- Transparency allows opportunity to quantify/define goals and mobilize support for
improving results for all students