American Recovery and Reinvestment Act
Race to the Top

The $4.35 billion Race to the Top Fund is the largest ever federal competitive investment in school reform. It will reward states for past accomplishments and create incentives for future improvements. The funding criteria that the U.S. Department of Education proposes to use will challenge states to create comprehensive strategies for addressing the four central areas of reform that will drive school improvement.

ARRA provides for competitive grants both to states and to schools and LEAs. Race to the Top money is divided into two sections:

• State Incentive Fund: ARRA allocates $4.35 billion for competitive grants for states to fund experimental school improvement programs. The money will be disbursed in two phases. Applications for the first phase are due in December.

• Innovation Fund: ARRA allocates $650 million for competitive grants for a local education agency OR one or more schools in partnership with a non-profit organization.