Stimulus Tensions Simmer

States and School Districts in Delicate Dance on Funds

The American Recovery and Reinvestment Act is clear: States are on the hook for advancing education improvement goals spelled out in the law as a condition for receiving up to $100 billion in economic-stimulus aid to education.

But school districts are the ones that must decide how to spend most of that aid—including hefty, one-time increases for Title I and special education funding—and tensions already are starting to emerge.

Take the Phillipsburg, N.J.,...

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Correction: 
A previous version of this article misstated the amount of money that states could receive in economic-stimulus aid to education. Up to $100 billion in aid could be received.

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