The American Recovery and Reinvestment Act: Investing in 21st Century Education (Updated 2.12.09)

by Press Staff

Building a Strong, Competitive 21st Century Economy

States now face a $91 billion shortfall in education funding – putting hundreds of thousands of jobs and the promise of a good education in jeopardy. Economists and scientists agree that strategic, targeted investments in education are needed to create jobs, give America’s children the skills they need to compete globally – and to put our economy back on the road to recovery.

The American Recovery and Reinvestment Act invests $105.9 billion in education and training to help build the world class education system our economy needs and our children deserve. The plan will: 
 
 
Prevent teacher layoffs and restore state cuts to education 
  • Creates a $53.6 billion state stabilization fund to help prevent education-related layoffs, upgrade, repair and modernize schools and restore harmful cuts to education funding, including $39.5 billion for local school districts and public colleges and universities;
  • Require states to meet certain criteria in order to be eligible for funds, including:

  1. Maintain their FY06 education funding levels

  2. Address teacher distribution inequities to ensure every classroom has a qualified, effective teacher

  3. Establish a longitudinal data system to help teachers gauge students progress in real time and lay groundwork for use of growth models for accountability

  4. Develop more fair and better assessments for students to measure critical thinking, problem solving and other complex skills students will need in today’s world.

  5. Improve state educational standards for students

  6. Comply with school improvement provisions of current law

  • Includes $5 billion for bonus grants to states for making progress in those key areas.
 
Strengthen education resources for students in need
 
  • Provides $13 billion for Title I grants for high poverty schools, which includes $3 billion to provide extra help to struggling schools;
  • Invests $12.2 billion to help schools maintain services for students with disabilities under the Individuals with Disabilities Education Act. 
 
Make critical investments in early education for an additional 124,000 children
  • Provides $2.1 billion for Head Start, and Early Head Start, which provides comprehensive development services for low-income preschool children, infants and toddlers. This will expand early education opportunities for an additional 124,000 children and create 50,000 early education jobs;
  • Studies have shown that Head Start is one of the best ways to improve child well-being, increase the educational achievement and future productivity of children, and reduce crime. Studies also show that $1 invested in early education yields up to $17 in returns.