Question: significance of american recovery and reinvestment act of 2009

title: American Recovery and Reinvestment Act of 2009
text: Senate -- $55 billion in state fiscal relief to prevent cuts in education aid and provide block grants ; $25 billion to school districts to fund special education and the No Child Left Behind K -- 12 law ; $14 billion to boost the maximum Pell Grant by $400 to $5,250 ; $2 billion for Head Start . House -- Similar aid to states and school districts ; $21 billion for school modernization ; $16 billion to boost the maximum Pell Grant by $500 to $5,350 ; $2 billion for Head Start . Conference -- The Conference Report merged most education aid with the State Fiscal Stabilization fund ( administered by the Department of Education ) and gave power over the funds to each governor under voluminous restrictions . The Governor is `` Required '' to spend $45 billion of the money on education to restore funding to 2008 levels but the mechanisms to enforce state maintenance of effort at 2005 -- 06 levels are complex and potentially impossible to implement . Hard hit states such as Nevada can not possibly find enough funds to get to the 2005 -- 06 state funding levels for education . Some states with no current budget cuts for education , such as Arkansas and North Carolina , may get nothing . This will result in a monumental 50 state legal and political fight over how to re-budget to best take advantage of the federal legislation . Many states will further reduce state funds for education to the 2005 -- 06 minimum so these state resources can be used for other state priorities and the net gain for education will be far less than the total federal appropriation .