ARRA Overview

On February 17, 2009, President Barack Obama signed the American Recovery and Reinvestment Act, which provides more than $80 billion in federal funds for pre-K through grade 12 education. Some of this funding will go to strengthen existing federal programs like Title I; additionally, nearly $54 billion will go toward the establishment of a State Fiscal Stabilization Fund (SFSF) which can be used for averting budget cuts in education and childcare, school modernization or repair, and making improvements in teacher effectiveness.

View our ARRA Frequently Asked Questions document (PDF).

View our ARRA Funding Guide (PDF).

Understanding the American Recovery and Reinvestment Act of 2009 (ARRA)

What does the ARRA really mean as far as additional spending?

  • The Department of Education's current funding (FY 2008) is $59.18 billion. The new funding available through the ARRA represents an increase of 164%.
  • The ARRA is estimated to provide an average of $870.60 per student nationally per year over the next 2 years.
  • The ARRA is estimated to create or save 267,355 teaching positions and 40,000 staff positions over the coming year.

How, exactly, will this take place? The ARRA

  • provides over $80 billion in additional funding toward pre-K through grade 12 education
  • allocates additional funding to existing federal programs (such as Title I) and also creates new funding opportunities
  • will release 50% of available funds in early April of 2009, with the rest to follow in approximately six months

The ARRA also includes several funding streams that are applicable to early childhood education:

State Fiscal Stabilization Fund (SFSF): $53.6 billion to support elementary and secondary education "and, as applicable, early childhood education programs and services," allowing programs to avert budget cuts, modernize facilities, and improve teacher quality

Title I, Part A (Education for the Disadvantaged): $10 billion for schools that have high percentages of students who live in poverty and are most at-risk for failing to meet state academic standards

Title I, School Improvement Grants: $3 billion available for Title I schools that have been designated as in need of improvement under No Child Left Behind (NCLB) (funding available Fall of 2009)

IDEA, Part B (Individuals with Disabilities Education Act): $11.7 billion to state educational agencies ($400 million of which is slated for preschool grants) to ensure that all children have access to a free and appropriate public education

Individuals with Disabilities Education Act (IDEA) Part C/Infants-Toddlers: $500 million to support early intervention services for infants and toddlers from birth to age 2

The Head Start and Early Head Start (EHS) Program: $2.1 billion in funds to expand Head Start and Early Head Start enrollment and provide improved compensation to attract and retain quality teaching staff

The Child Care and Development Block Grant: $2 billion in funding, most of which will go directly to states to help families purchase child care. Approximately $255 million of the funding will be set aside for quality improvements ($93.6 million of which will go specifically toward improvement of infant and toddler child care)

Community Services Block Grant: $1 billion in funding, allocated based on an existing formula, to address urgent community development needs; could be a source of funding for projects that help create or expand child care facilities for needy children

Child Development Centers (DoD): $240 million for new child development centers on military bases ($80 million each for Army, Navy/Marines, and Air Force)

Federal Guidelines for ARRA
On April 1, 2009, the U.S. Department of Education provided additional information on the following ARRA funds and how they can be used: