Originally published Wednesday, July 1, 2009 at 2:35 PM
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Duncan: States could lose out on stimulus cash
Education Secretary Arne Duncan is releasing $2.7 billion in stimulus dollars earlier than planned to help states confront increasingly tighter budgets.
Education Secretary Arne Duncan is releasing $2.7 billion in stimulus dollars earlier than planned to help states confront increasingly tighter budgets.
Duncan said Wednesday he is distributing $2.7 billion to states that he had planned to distribute in October or November.
The money comes from a fund for state government priorities that has very few strings attached. It doesn't have to be spent on education, although the administration hopes it will be.
Vice President Joe Biden said in a statement: "These Recovery Act funds will enable states to move quickly to protect critical jobs and will help states cope with their immediate budgetary challenges."
The stimulus law passed earlier this year provided about $100 billion for education. The department is releasing the money in stages and has distributed about $38 billion so far, though much of the money has not yet reached schools.
"The department has done everything possible to get stimulus funds out the door quickly and effectively," Duncan said in a statement.
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