A Breakdown of the American Recovery and Reinvestment Act

The $787 billion American Recovery and Reinvestment Act that President Barack Obama signed last week contains more than $100 billion in direct education funding for the next two fiscal years and $39 billion in bonding authority and tax credits, including:

$13 billion for Title I, Part A grants to states ($10 billion) and school improvement grants ($3 billion);

$12.2 billion for special education grants to states ($11.3 billion), preschool grants ($400 million), and grants for infants and families ($500 million);

$650 million for education technology grants;

$300 million for teacher quality, with $200 million for the Teacher Incentive Fund and $100 million for Teacher Quality Partnership Grants;

$70 million for the education of homeless children and youth;

$17.1 billion (both discretionary and mandatory funding) to increase the maximum Pell Grant by

$500, to $5,350 in 2009;

$200 million for the Work-Study Program;

$60 million to help the Department administer surging student financial aid programs while navigating the evolving student loan environment;

$680 million for state vocational rehabilitation grants to states and independent living grants;

$250 million for statewide data systems;

$100 million for Impact Aid school construction;

$2.1 billion for Head Start ($1 billion) and Early Head Start ($1.1 billion) and $2 billion for child care development grants, through the Department of Health and Human Services;

$53.6 billion for the State Fiscal Stabilization Fund, of which the Secretary will reserve $4.35 billion for state incentive grants (awarding states that most aggressively pursue higher standards, quality assessments, robust data systems, and teacher quality initiatives) and $650 million for an innovation fund (awarding school districts and consortia of districts and non-profits with strong records of improving student achievement).

Of the remaining funds, at least 81.8 percent($39.75 billion) is committed to support K-12 and higher education (distributed through existing formulas), and up to 18.2 percent($8.85 billion) is slated for public safety and other government services (which may involve education, such as K-12 and higher education facility renovation and modernization);

$25.2 billion in bonding authority for states and districts to issue bonds over the next 10 years for K-12 facility renovation and modernization, to be retired through a combination of local, state, and federal funds (see also http://www.ed.gov/policy/gen/leg/recovery/modernization/index.html);

$13.8 billion to boost the tuition tax credit from $1,800 to $2,500 (for families earning up to $180,000).

Source: U.S. Department of Education

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