Funds made available through the American Recovery and Reinvestment Act which passed earlier this year

WASHINGTON — U.S. Senators Debbie Stabenow (D-MI) and Carl Levin (D-MI) announced today that Michigan can now apply for funding in the American Recovery and Reinvestment Act (ARRA) through the U.S. Department of Education to help reform our schools and keep teachers in the classroom. A total of $44 billion will be made available to states and schools across the nation through the first round of State Fiscal Stabilization Fund (SFSF), Title 1, IDEA, Vocational Rehabilitation and Independent Living programs. Funding is determined through an application process based on proposals put together by states and will be released within two weeks of an application’s approval.

“We need to provide our children with a world-class education, so they can compete in the global economy,” said Stabenow. “That’s why this recovery package makes vital resources available to help keep teachers in the classroom, offer much-needed assistance to students with special needs, and keep our schools safe.”

“In Michigan and across the nation, this federal economic recovery funding is a critical investment in the health of our education system as well as in the young men and women who represent the future of this country,” said Levin. “In particular, educationally disadvantaged students will see enormous benefits from the billions set aside for Title 1 and special education programs, which will increase the federal share of special education services to its highest level since the inception of the program. We all share a responsibility to do everything we can to ensure a bright future for our children, and these federal dollars are an important part of that effort.”

A total of $32.6 billion will be available under the State Fiscal Stabilization Fund, representing two-thirds of the total dollars in the fund. This includes $26.6 billion to save jobs and improve K-12 and higher education and a separate $6 billion in a Government Services Fund to pay for education, public safety or other government services.

A second round of stabilization funds will be released later in the year. A third round of funding, the Race to the Top competitive grant program, will reward states that have made the most progress on reforms. Michigan is estimated to receive $1.5 billion in total stabilization funding.

In addition to the stabilization funds, $11.4 billion is available immediately under the Title I, IDEA, Vocational Rehabilitation and Independent Living programs. Title I programs serve schools with large concentrations of low-income students. IDEA funds serve students with disabilities. A second round of Title I and IDEA funds will be available later in the year. Michigan is estimated to receive a total of $800 million in funding from these programs.

In order to ensure accountability for the use of these funds, the recipients of these funds will be required to report on the number of education jobs that are saved, the uses of funds, and the amount of State and local tax increases averted because of the ARRA.

The guidance documents and SFSF application are available on the Department of Education Web site (www.ed.gov/recovery). This site also provides information about allocations under the American Recovery and Reinvestment Act.