March 5, 2009
Stimulus Package Impacts on Education
The U.S. House and Senate reached an agreement and passed the economic stimulus bill that was signed into law by President Obama on Feb. 17, 2009. The American Recovery and Reinvestment Act of 2009 (ARRA) includes provisions designed to create and save jobs and facilitate investments, tax cuts and education reform, as well as additional funding for student aid and higher education institutions.
The U.S. Department of Education (ED) announced the creation of the American Recovery and Reinvestment Act of 2009 Web site, which will be updated as additional information becomes available. The site currently features Secretary Duncan’s ARRA press release, a fact sheet, budget information (including state allocations) and excerpts from the ARRA that relate to the programs administered by ED.
According to ED, the ARRA provides for direct funding of education ($77 billion), college affordability ($30.8 billion) and school modernization (up to $33.6 billion). The ARRA also includes funds for:
- State stabilization in exchange for a commitment to begin advancing education reforms to help avert education cuts ($40 billion).
- Title I and school improvement programs ($13 billion).
- A Pell Grant program to increase the grant amounts by $500 to $5,350 in 2009-2010 and $5,500 in 2010-2011 ($17 billion).
- Federal Work Study programs ($200 million).
- Tuition tax credits to be increased from $1,800 to $2,500 for families earning up to $180,000 ($13.8 billion).
- Other state services, including education ($8.8 billion).
Some provisions proposed in the U.S. House and Senate versions of the bill did not make it into the compromised ARRA legislation, including:
- An increase in the unsubsidized Stafford loan limit (House).
- Federal contributions to the Perkins loan program (Senate).
For more information about the ARRA, visit ED’s American Recovery and Reinvestment Act of 2009 Web site or contact OGSLP’s Policy, Compliance, and Training department at 405.234.4432 or email@example.com.