Stimulus Funding

Making Sense of ARRA

A Simple Guide to the

American Recovery and Reinvestment Act of 2009
“
It’s time to prepare every child,

”
everywhere in America to out-compete
any worker, anywhere in the world.

—President Barack Obama

2
 Introduction
On February 17, President Obama signed the American Recovery Stimulus Overview
and Reinvestment Act of 2009 (ARRA) which provides over $80 billion
Funding Themes
in additional federal funds for preK-12 education. In addition to providing
• Reform • 21st Century Skills
extra funds for existing federal programs like Title I, the 2009 economic • World-Class Education • Accountability
stimulus bill includes almost $54 billion for a State Fiscal Stabilization Fund • Modernizing Classrooms
which can be used for preventing teacher layoffs, reducing program
cutbacks, and promoting school facility modernization programs.
American Recovery and Reinvestment Act of 2009
• Provides over $80 billion in additional federal funds for preK-12 education.
• Distributes most of the funding through existing programs like Title I.
We are pleased to provide you with this simple, easy-to-understand
guide to help you and your district better understand ARRA.

$787 $115 Billion

BILLION set aside for education;
TOTAL $80 billion for preK-12

Have Questions? Visit www.pearsonschool.com/fundingforschools All information is current as of December 8, 2009

or e-mail your questions to us at grantexperts@pearson.com

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 Major Federal Programs
Receiving Stimulus Increases
ARRA Funding Amount Distribution Use of Funds
Title I $10 Billion Stimulus + Formula funds based on poverty and targeting To implement evidence-based strategies that help
$14 Billion in existing funds large districts with high percentages of low income build sustainable capacity for improving teaching
students, including most urban areas. and learning in Title I schools.
TOTAL
with Stimulus = $24 Billion

Title I – $3 Billion Stimulus +
$500 Million in existing funds
School Improvement
TOTAL
with Stimulus = $3.5 Billion
State applications for school improvement grants Intervention for students failing AYP, tutoring,
are due February 8, 2010. Each state will hold professional development, coaches, outside
competitive grants to distribute the funds. experts, etc.

Title II-D – $650 Million Stimulus +
$269 Million in existing funds
Enhancing Education
Through Technology (EETT)
TOTAL
with Stimulus = $919 Million
50% distributed to districts by formula Technology hardware, software applications,
and 50% through competitive grants. 21st Century Skills and technology personnel.
25% of funds must be spent on professional
development.

IDEA – $12.2 Billion Stimulus +
$10.6 Billion in existing funds
Special Education
TOTAL
with Stimulus = $22.8 Billion
Formula funds based on number of students Must fund excess costs of providing special
with disabilities. $400 million will be set aside education. Up to 15% can be spent on RTI.
for preschool.

Head Start $1 Billion Stimulus + Grants to existing Head Start centers Programs focused on school readiness
$7 Billion in existing funds for students ages 3–5.

TOTAL
with Stimulus = $8 Billion

Have Questions? Visit www.pearsonschool.com/fundingforschools All information is current as of December 8, 2009

or e-mail your questions to us at grantexperts@pearson.com

6 7
 New Stimulus Funding Programs
ARRA Funding Amount Distribution Use of Funds
State Fiscal Approximately Distributed to districts based on state’s existing To restore state education funding for K-12
school funding formulae. education and for public universities.
Stabilization Fund – $40 Billion Stimulus
Education Stabilization Page 20 of the SFS guidance includes the following
examples of how the funds could be used: “paying
the salaries of administrators, teachers, and support
staff; purchasing textbooks, computers, and other
equipment; supporting programs designed to
address the educational needs of children at risk
of academic failure, limited English proficient
students, children with disabilities, and gifted
students; and meeting general expenses.”

State Fiscal Approximately Governor-controlled funds “High-priority” state programs such as public
safety and other critical services which may include
Stabilization Fund – $8 Billion Stimulus education, modernization, renovation, and repairs
Government Services Fund of public school and institutions of higher education
facilities.

Race to the Top $5 Billion Stimulus Federal competitive grant for states meeting
key performance measures in education.
Round 1 applications are due January 19, 2010.
Round 2 applications are due June 1, 2010.
Awarded in recognition of districts and states
that have met key performance measures in
achieving equity through teacher distribution,
establishing longitudinal data systems, and
improving assessments for English language
learners and students with disabilities.

Have Questions? Visit www.pearsonschool.com/fundingforschools All information is current as of December 8, 2009

or e-mail your questions to us at grantexperts@pearson.com

8 9
 Timing and Distribution of Funds
Timeline 2009 2010 2011
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Title I
APRIL 1 SEPTEMBER 1 SEPTEMBER 30 SEPTEMBER 30
TOTAL Stimulus Dollars =
$10 Billion 50% of funds States receive 85% must be All remaining funds
to states remaining funds obligated must be obligated

Title I
School Improvement FEBRUARY 8 SEPTEMBER 30
TOTAL Stimulus Dollars =
State All remaining funds
$3 Billion applications due must be obligated

Title II-D (EETT)

Enhancing Education FALL 2009
Through Technology
Distributed
TOTAL Stimulus Dollars = to states
$650 Million

IDEA
Special Education APRIL 1 SEPTEMBER 1 SEPTEMBER 30
TOTAL Stimulus Dollars = 50% of funds 50% of funds IDEA funds must be
$12.2 Billion to states to states obligated

State Fiscal
Stabilization Fund JULY 1 JANUARY 11 SEPTEMBER 30
50% of funds 50% of funds Stabilization funds
Education Stabilization
to states to states must be obligated
$40 Billion
Government Services Fund
$8 Billion

Have Questions? Visit www.pearsonschool.com/fundingforschools All information is current as of December 8, 2009

or e-mail your questions to us at grantexperts@pearson.com

10 11
Pearson can help answer
your ARRA questions!
E-mail us at grantexperts@pearson.com or visit our
comprehensive Web site www.pearsonschool.com/fundingforschools
for more detailed information.

All information is current as of December 8, 2009

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