and technological literacy by using technology to improve teaching and learning.
States must use 25 percent of the Education Technology State Grants for professional
• Sustained professional development programs.
• Curricula that integrates technology.
• Technology that increases parental involvement.
• Technology to collect, manage, and analyze data to enhance teaching
and school improvement.
$5 billion—Secretary’s Innovation Fund
The most direct and obvious stimulus investment in education reform is a $5 billion
fund overseen by the secretary of education to promote his four reform priorities.
The Race to the Top Fund is $4.35 billion of competitive grants to states that are
making the most progress in improving student achievement and implementing the
The Investing in What Works and Innovation Fund is $650 million in competitive grants to local education agencies (LEAs) and nonprofits that have made significant gains in closing achievement gaps and are models of best practices.
Because the grants are awarded on a competitive basis and are also somewhat
contingent on state and district use of other stimulus funds, the government will
award these grants last. The 2010 awards will be made in two rounds: the first
in late fall 2009 and the second in the summer of 2010.
See the table on page 7 for a breakdown of other education funding in the American
Recovery and Reinvestment Act.
To have as quick an effect on economic conditions as possible, the Department of
Education distributed $43.7 billion, which is almost half of the stimulus money,
in April 2009 and will distribute the remaining $49 billion to states in the summer
and fall of 2009.
For a state-by-state listing of funding amounts connected to the American Recovery
and Reinvestment Act, see Figure 2.