More than $100 billion in education funding is included in the American Recovery and Reinvestment Act, the so-called stimulus package, approved by Congress and signed into law by President Barack Obama.

Education Secretary Arne Duncan called the Act an “historic opportunity to create jobs and advance education reform.” and emphasized the urgency of distributing the funds to states on an aggressive timetable in order to avert layoffs.

The ARRA provides:

Direct Funding for Education -- $77 Billion:

-- $40 billion in state stabilization funds to help avert education cuts. Funds will be given to states in exchange for a commitment to begin advancing education reforms. School systems have discretion to use some of this money for school modernization.

-- $13 billion for Title I, including $3 billion for Title I school improvement programs.

-- $12 billion for Individuals with Disabilities Education Act (IDEA) programs.

-- $5 billion in incentive grants to be distributed on a competitive basis to states that most aggressively pursue higher standards, quality assessments, robust data systems and teacher quality initiatives. This includes $650 million to fund school systems and non-profits with strong track records of improving student achievement.

-- $5 billion for Early Childhood, including Head Start, early Head Start, child care block grants, and programs for infants with disabilities. (Includes Department of Health and Human Services programs).

-- $2 billion for other education investments, including pay for performance, data systems, teacher quality investments, technology grants, vocational rehab, work study and Impact Aid.

Additional School Modernization – (up to) $33.6 Billion:

-- An additional $8.8 billion in state stabilization funds are available for other state services including education. School modernization is an eligible use of this funding.

-- Authority for states and school systems to issue $22 billion dollars in Qualified School Construction Bonds for renovation, repairs, land acquisition, and school construction. The bill would allow an additional annual $1.4 billion of QZAB issuing authority to state and local districts for 2009 and 2010 which can be used to finance school building renovations.

Dale Lestina, president of Organizations Concerned about Rural Education, praised the Congress and President Obama for their action. “This legislation will save teaching jobs and construction jobs and provide much needed services. It willl be important to students in rural schools,” he said, pointing out that about half of the nation’s schools are in rural areas or small towns and 40 percent of the 53 million public school students live in rural areas.