Friday, January 16, 2009

Education and the New Stimulus Package

We finally get some color on how much education will get out of the new stimulus package. Approximately 14% of the Obama’s $825 billion stimulus package or $117 billion is being allocated to Education. Of this total, $41 billion will go to local school districts to students of low-income or where large student populations of special needs are. Another $39 billion will go to other school districts and public universities. An additional $15 billion will be made available to states for meeting important performance measures. The rest of the money will go towards public universities, construction projects, and higher education including the increase of Pell Grants. The potential issue in this respect that comes to my mind has to do with the appropriate handling and allocation of the money.

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