States must use $39.8 billion—82 percent—to restore (in equal proportions) both
their K– 12 and higher education funding to either the fiscal year 2008 or 2009 level,
whichever is higher. States must distribute these funds to local districts based on
the state’s primary education funding formula.
States must use the remaining $8.8 billion—18 percent—for public safety and other
government operations. Activities may include K– 12 services or the renovation or
repair of school facilities, but they may not include new building construction.
• Any activity authorized under the
• ESEA, which includes the modernization, renovation, or repair of
public school facilities
• Adult Education and Family Literacy Act (Adult Education Act)
• Carl D. Perkins Career and Technical Education Act of 2006
• Paying salaries to avoid laying off teachers and other school employees.
Note: Districts may NOT use funds to
• Pay maintenance costs.
• Purchase or upgrade vehicles.
• Restore or supplement a rainy-day fund.
$650 million—Education Technology State Grants
The stimulus plan provides $650 million for the Enhancing Education Through
Technology (EETT or E2T2) state grant program beyond the fiscal year 2009
appropriation of $270 million. EETT helps districts increase student achievement
Federal Pell Grants
Vocational Rehabilitation State Grants
Statewide Data Systems
Federal Work Study
Teacher Incentive Fund
Impact Aid Construction
Teacher Quality Enhancement
McKinney-Vento Homeless Assistance
Source: U.S. Department of Education