Policy Analysis | May 2009

Education Funding from the American Recovery and Reinvestment Act

Below are estimates of the amount of education funding that each state will receive from certain aspects of the American Recovery and Reinvestment Act (ARRA). The estimates show that SLC states will receive a total of over $16 billion in education funding in the initial release of ARRA funding. However, these are estimates only based on available and current data and may not reflect exact allocations that states or school districts receive when these funds are actually allocated.

Grants to local educational agencies (LEAs) under Title I of the Elementary and Secondary Education Act (ESEA), the largest elementary and secondary education program, supplement state and local funding for low-achieving children, especially in high-poverty schools. The program finances the additional academic support and learning opportunities that are often required to help disadvantaged students progress along with their classmates.

ARRA also appropriates significant new funding for programs under Parts B and C of the Individuals with Disabilities Education Act (IDEA). Part B of the IDEA provides funds to state educational agencies (SEAs) and LEAs to help them ensure that children with disabilities, including children aged three through five, have access to a free appropriate public education to meet each child's unique needs and prepare him or her for further education, employment, and independent living.

The IDEA funds under ARRA will provide an unprecedented opportunity for states, LEAs, and early intervention service providers to implement innovative strategies to improve outcomes for infants, toddlers, children, and youths with disabilities while stimulating the economy. Under the ARRA, the IDEA funds are provided under three authorities: $11.3 billion is available under Part B Grants to States; $400 million is available under Part B Preschool Grants; and $500 million is available under Part C Grants for Infants and Families.

The State Fiscal Stabilization Fund provides grants to Governors for state fiscal relief to support ongoing costs of education as well as incentive funds to states and localities to encourage certain types of education reforms. The conference agreement provides $53.6 billion for the Stabilization Fund, distributed through the Department of Education, to states to prevent teacher layoffs and cutbacks in education and other key services. Of the $53.6 billion, $39.5 billion is allocated to support elementary, secondary, and postsecondary education; $5 billion is allocated to States as bonus grants for meeting key performance measures in education; and $8.8 billion is provided to States for high priority needs, such as public safety and other critical services.

Initial Release Percentage
ESEA Title I Grants to LEAs
IDEA Part B Grants to States
State Fiscal Stabilization Fund
North Carolina
South Carolina
West Virginia
SLC Total
National Total
SLC vs. Total Funding as Percentage

Total funding includes two grants not presented in this table, IDEA Part B: Preschool Grants and IDEA Part C: Grants to Infants & Families.

U.S. Department of Education, http://www.ed.gov/policy/gen/leg/recovery/factsheet/idea.html &
http://www.ed.gov/about/overview/budget/titlei/fy09recovery/index.html, accessed April 28, 2009.
Committee on Education & Labor, U.S. House of Representatives, http://edlabor.house.gov/blog/2009/01/school-districts-will-benefit.shtml, accessed April 28, 2009.
CSG News Release: American Economic Recovery and Reinvestment Act of 2009, State Fiscal Stabilization Fund, http://www.recovery.gov.