ARRA Programs and Funding 8/28/09

Overview

There has been much said and written about the Department of Education’s (ED) plans for
spending $100 billion. While ARRA makes a historic investment in education, most of the
money flows directly to States via the State Fiscal Stabilization Fund (SFSF) and established
formula programs. This unprecedented amount of new federal funding directed to the States for
education programs and reform efforts has arguably changed the national dialogue regarding the
nation’s education system. It has also brought into sharp focus four “assurances” or “pillars of
education reform” to which States must commit in their applications for any stimulus funds:
improving standards and assessments; increasing the effectiveness of teachers and leaders;
building and using data systems to inform educators’ decisions; and turning around the country’s
lowest performing schools.