Special Report
Federal

Stimulus Aid: More Questions—and Answers

By Alyson Klein & Michele McNeil — March 10, 2009 3 min read
  • Save to favorites
  • Print

Education Week Politics K-12 bloggers Alyson Klein and Michele McNeil continue gathering answers to questions on the $115 billion in education aid under the American Recovery and Reinvestment Act, the recent economic-stimulus package. Here are highlights from some of their most recent blog posts. (For previous rounds of questions and answers, see Economic Stimulus Q&A, March 4, 2009.)

Q Has there been any clarification as to whether federal money will be available for independent schools?

A There’s no money in the bill specifically for private or independent schools. But some private schools that serve students in special education do receive funding under the Individuals with Disabilities Education Act, which got about $12 billion in the stimulus.

Any funds left over in the stabilization fund after states “backfill” their education budgets can go to any program authorized under the No Child Left Behind Act (and a number of other federal education laws). That would include Title V of NCLB, which is intended to support innovative programs. Private schools can indirectly benefit.

It’s not yet known what the grant criteria will be for the $625 million in innovations grants. That money can go to nonprofits (which most private schools are) that partner with school districts or with a consortia of schools.

Note: There is a specific prohibition in the bill that says none of the money can go to provide financial assistance to students to attend private elementary or secondary schools. We’re taking that to mean “no vouchers.”

Q Is there anything in the stimulus package to help charter schools?

A Much of the money flows through existing formulas, such as Title I or the IDEA, so any public charter school that benefits now from the formula will get a piece of the stimulus. The stabilization fund is used first to backfill cuts through the state’s school funding formula, so as long as the charter school gets money through the state’s funding formula, it would get money through the stabilization as well. Given the nature of the U.S. Department of Education’s innovation fund, it’s likely charter schools would be good candidates as well.

Charter schools may also be eligible for school bonding monies, including an expanded New Markets Tax Credit, which charter schools have already tapped.

Q Regarding special education, do you know of any accommodations for “maintenance of effort” that would allow districts to use the money to pay for programs that already exist?

A (Thanks to Education Week’s Christina A. Samuels, the author of the On Special Education blog, for answering this question.) The maintenance-of-effort provisions that currently exist within the idea will apply to stimulus funds. That means that a district can’t take all of its stimulus money and use that to pay for current special education programs.

There is, however, some flexibility in the “supplement, not supplant” provisions under the 2004 reauthorization of the idea. If the federal government allocates more money to a district from one year to the next, the district is allowed to take the difference between the two allocations, halve it, and use that figure to reduce its own funding requirements. So, if a district received $1 million in federal funds for one fiscal year, and $1.5 million the next fiscal year, the district is allowed to reduce its local funding requirements by $250,000.

But it’s also important to note there are other ways to use stimulus money without expanding programs and without having to maintain that effort when the money disappears. For example, a one-time expenditure on educational technology wouldn’t be a program expansion and wouldn’t be subject to maintenance of effort.

A version of this article appeared in the March 11, 2009 edition of Education Week as Stimulus Aid: More Questions—and Answers

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Special Education Webinar
Hidden Costs of Special Ed Vacancies: Solutions for Your District
When provider vacancies hit, students feel it first. Hear what district leaders are doing to keep IEP-related services on track.
Content provided by Huddle Up
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Privacy & Security Webinar
How Technology Is Reshaping Childhood
How do we protect kids online while embracing innovation? Learn about navigating safety, privacy, and opportunity in the Digital Age.
Content provided by Connect x Protect
Budget & Finance Webinar Creative Approaches to K-12 Budget Realities
What are districts prioritizing in 2026? New survey data reveals emerging K-12 budgeting trends.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Federal Opinion How the Institute of Education Sciences Could Better Serve Schools
“It’s been all over the place,” explains the scholar tasked with reimagining IES.
4 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
Federal Senate Days Are Numbered for Top Republican Charged With Ed. Dept. Oversight
Sen. Bill Cassidy was vying for a third term in the Senate but lost his primary over the weekend.
4 min read
Sen. Bill Cassidy, R-La., right, hugs a supporter during an election night watch party Saturday, May 16, 2026, in Baton Rouge, La.
Sen. Bill Cassidy, R-La., right, hugs a supporter during an election night watch party on Saturday, May 16, 2026, in Baton Rouge, La. Cassidy leads the Senate committee charged with education policy. He was vying for a third Senate term but lost his primary over the weekend.
Gerald Herbert/AP
Federal Opinion Trump's K-12 Leader: Let’s Improve Assessment Without Sacrificing Accountability
The Ed. Dept. is shrinking the federal footprint but raising academic expectations, says Kirsten Baesler.
Kirsten Baesler
4 min read
A pencil leaning against the wall. The shadow of a ladder shade reflected on the wall.
Education Week + E+/Getty
Federal 'Creative' or 'Illegal?' Congress Debates Trump's Dismantling of Education Dept.
Republicans praised Linda McMahon for shrinking the federal K-12 footprint. Democrats raised concerns.
6 min read
Education Secretary Linda McMahon arrives to testify during the House Education and Workforce Committee hearing titled "Examining the Policies and Priorities of the Department of Education," in Rayburn building on Thursday, May 14, 2026.
Education Secretary Linda McMahon arrives to testify during the House Education and Workforce Committee hearing on Thursday, May 14, 2026. She defended the movement of dozens of her department's programs to other agencies and a budget proposal that would eliminate dozens of federal education programs.
Tom Williams/CQ Roll Call via AP