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New information from agency on stimulus education funding

The funds under the State Fiscal Stabilization Fund (SFSF) and Title I, Part A will be available in two stages. Funds from these very large programs are to be delivered by formula from the US Department of Education to the states.

  • The Department of Education will release 50 percent of Title I, Part A before the end of March 2009, without requiring new state applications.
  • Streamlined, user-friendly applications for the initial 67 percent of the SFSF will be available to governors by the end of March 2009, and funds will be made available by the Department of Education within two weeks after receipt of an approvable application.
    • The Department of Education will award SFSF funds to governors in two phases. To receive its initial SFSF allocation, a state must submit to the Department of Education an application that provides (1) Assurances that they are advancing the four reforms described in the statute and maintenance of effort; (2) Baseline data on their current status in each of these areas; and (3) Basic information on how the funds will be used.
    • Within two weeks of receipt of an approvable SFSF application, the Department of Education will provide a state with 67 percent of its SFSF allocation.
    • A state will receive the remaining portion of its SFSF allocation after the Department of Education approves the state’s plan detailing its strategies for addressing the education reform objectives described in the assurances. This plan must also describe how the state is implementing the record-keeping and reporting requirements under ARRA and how SFSF and other funding will be used in a fiscally prudent way that substantially improves teaching and learning.
    • In the near future, the Department of Education will issue guidance on the specific requirements that a state must meet to receive its phase two allocation. The Department of Education anticipates that the phase-two funds will be awarded beginning July 1, 2009, on a rolling basis.
  • For these programs, the Department of Education expects to make available the remainder of the funds during the period July 1 to September 30, 2009, conditioned on states providing additional information.

Funds for Educational Technology State Grants ($650 million) will be made available beginning in fall 2009, and will be conditioned upon receipt of further information that will be outlined in future guidance.

Melanie Anderson
Associate Director, Office of Government Relations
ALA Washington Office

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