Special Report
Federal

Stimulus Aid to Go Out in Phases, Guidelines Say

By Alyson Klein & Michele McNeil — March 09, 2009 3 min read
  • Save to favorites
  • Print

The eagerly awaited federal guidelines on some $100 billion in stimulus funding for education aim to pump money out quickly, while giving the U.S. Department of Education leverage to demand improvements from states and districts.

The biggest single restriction in the guidelines issued March 7 involves the $53.6 billion State Fiscal Stabilization Fund, the bulk of which is aimed at steadying faltering state budgets. States won’t get all of their stabilization funds at once. Instead, 67 percent—or about $32 billion—will go out within two weeks of a state’s submission of its application.

The rest will go out state by state as the department approves states’ plans to comply with the assurances required under the law that they take steps to increase teacher quality, build better data systems, improve standards and assessments, and turn around failing schools.

However, states that are in particularly dire straits and in danger of laying off employees could receive up to 90 percent of their stabilization funding in the first allocation. In each of those cases, the rest of the state’s share would be provided after the Education Department approved its plan.

The aim is to have states balance the need to spur the economy by creating or saving jobs with the desire to direct money toward efforts to boost student achievement that can be sustained even if the bulk of the stimulus money doesn’t become part of the federal baseline of K-12 aid.

“These funds will be distributed as quickly as possible to save and create jobs and improve education, and will be invested as transparently as possible so we can measure the impact in the classroom,” U.S. Secretary of Education Arne Duncan said in a statement. “Strict reporting requirements will ensure that Americans know exactly how their money is being spent and how their schools are being improved.”

The department is using a similar strategy with the $10 billion in stimulus money for Title I programs to help disadvantaged students, and $11.7 billion for special education state grants, all of which will be spread out over two years.

Fifty percent of the Title I and special education funds provided under the stimulus measure, known as the American Recovery and Reinvestment Act, will be available by the end of March.

Although those programs have long been a cornerstone of federal funding for education, the new allocations are a considerable boost over the usual baseline. For instance, Title I received about $13.9 billion in fiscal 2008, while special education got $10.9 billion.

Additional guidelines are expected in the coming weeks.

Beware ‘Funding Cliff’

The guidance stresses that the stimulus funding is short-term money that may not be sustainable in future budgets. It emphasizes that districts and states should use the money for shorter-term investments so there isn’t a “funding cliff.”

For instance, the Education Department recommends that Title I funds be used to expand prekindergarten programs, bolster online learning, or offer new opportunities for teacher professional development.

Still, analysts say it may be difficult for states and districts to develop programs that will put the stimulus funds to good use without setting up expectations for future spending.

“I think that’s one of the trickiest provisions in the law,” said Thomas Toch, a co-director of Education Sector, a think tank in Washington. “Politically, it’s a killer [to put] money into programs, then pull the rug out from under them two years later.”

In the next 30 days, nearly $700 million more in stimulus money will be available for a variety of programs, including vocational-rehabilitation state grants.

And $17.3 billion for Pell Grants and college work-study programs is available for the next academic year, beginning July.

A version of this article appeared in the March 18, 2009 edition of Education Week

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
Mathematics Webinar
Pave the Path to Excellence in Math
Empower your students' math journey with Sue O'Connell, author of “Math in Practice” and “Navigating Numeracy.”
Content provided by hand2mind
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
Recruitment & Retention Webinar
Combatting Teacher Shortages: Strategies for Classroom Balance and Learning Success
Learn from leaders in education as they share insights and strategies to support teachers and students.
Content provided by DreamBox Learning
Classroom Technology K-12 Essentials Forum Reading Instruction and AI: New Strategies for the Big Education Challenges of Our Time
Join the conversation as experts in the field explore these instructional pain points and offer game-changing guidance for K-12 leaders and educators.

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 Obituary Democratic Sen. Dianne Feinstein of California, an Advocate for Liberal Priorities, Dies at Age 90
Feinstein pushed for bans on military-style weapons after the 2012 mass shooting at Sandy Hook Elementary School in Connecticut.
10 min read
Senator Dianne Feinstein shakes hands with supporters of Planned Parenthood on July 6, 2018, in Oakland, Calif.
Senator Dianne Feinstein shakes hands with supporters of Planned Parenthood on July 6, 2018, in Oakland, Calif.
Lea Suzuki/San Francisco Chronicle via AP
Federal Biden Credits School Shooting Survivors as He Creates Gun Violence Prevention Office
President Biden announced the first-ever White House Office of Gun Violence Prevention, fulfilling a long-time goal of school shooting survivors.
5 min read
President Joe Biden speaks about gun safety on Sept. 22, 2023, from the Rose Garden of the White House in Washington. Rep. Maxwell Frost, D-Fla., applauds at left.
President Joe Biden speaks about gun safety on Sept. 22, 2023, from the Rose Garden of the White House in Washington. Rep. Maxwell Frost, D-Fla., applauds at left.
Jacquelyn Martin/AP
Federal A Flood of Public Feedback Has Delayed a Title IX Change Covering Trans Athletes—Again
The Biden administration has not taken the final step to adopt long-awaited Title IX changes that would explicitly protect LGBTQ+ students.
5 min read
Isaya S. waves out the window of a Seattle Public Schools bus while participating in the annual Seattle Pride Parade on June 25, 2023, in Seattle.
Isaya S. waves out the window of a Seattle Public Schools bus while participating in the annual Seattle Pride Parade on June 25, 2023, in Seattle.
Lindsey Wasson/AP
Federal Is Funding for School Archery and Hunting Programs Really at Risk?
A U.S. Department of Education document led to confusion among school administrators about funding for archery and hunting programs.
4 min read
Students participate in a school archery program. A group of congressional lawmakers are working to amend federal law to ensure schools can purchase bow and arrows and other supplies for archery, sharp shooting, and hunting programs in schools.
Students participate in a school archery program. A group of congressional lawmakers are working to amend federal law to ensure schools can purchase bow and arrows and other supplies for school archery, sharp shooting, and hunting programs with federal education funds.
Courtesy of the National Archery in the Schools Program