How Is the Stimulus Funding Being Distributed?

Most of the nearly $100 billion for education activities will be delivered to states and districts through one of five distinct mechanisms: the existing Title I and Individuals with Disabilities Education Act (IDEA) formulae, the State Fiscal Stabilization Fund, Education Technology State Grants, and the innovation fund under the auspices of the secretary of education. See Figure 1 below for a funding breakdown.

When the stimulus funds were released, Secretary Duncan declared, “If all we do with the money is save jobs, then we’ve failed.” Duncan wants to see states and districts use the nearly $100 billion in emergency education spending to dramatically improve education. These five streams of funding provide opportunities for schools and educators to achieve their reform goals.