American Recovery and Reinvestment Act (ARRA)
In response to the threatened collapse of the economy at the end of 2008, Congress and President Barack Obama passed the ARRA, which is also known as the federal stimulus. The education component of this act provided more than $100 billion for prekindergarten through 12th grade schools nationwide, and nearly $8 billion for California. It was a one-time infusion for the 2008-09 and 2009-10 school years. The funds also are intended as an incentive for states to improve in four reform areas: 1) increasing teacher and principal effectiveness and equitable distribution of effective staff; 2) establishing data systems and using data for improvement; 3) adopting rigorous college- and career-ready standards and high-quality assessments; and 4) turning around the lowest-performing schools. The governor of each state had to commit (or give "assurances") that the state would pursue reform in these areas before the state was eligible for the funds.
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