AUCD Legislative News In Brief Special Stimulus Report Updated

February 15, 2009

Economic Recovery

Now that the American Recovery and Reinvestment Act (ARRA) has been signed into law, AUCD will work to provide technical assistance to network members to ensure that some of this large influx of funding will be used to assist people with disabilities and families. 

Below is an updated table containing the funding amounts in the final bill as well as the agency responsible for distributing the funds.  Following the table are details concerning the direction and reported purposes of the funds and any additional information.  The conference report from the House Rules Committee is available online at   

The best approach seems to be a proactive one with ideas that support job creation and are shovel ready with a focus on immediate implementation.  AUCD will continue to provide information and resources related to the stimulus online at


American Reinvestment and Recovery Act


Funding Amount

Agency Responsible

Purposes identified





IDEA Part B state grants

$12.2 billion

State Department of Education

·         $400 million Preschool Grants

·         $11.3 billion special education grants to states

·         $500 million grants for infants and families

Part C Early Intervention

$500 million

State Level Agency


Title I of ESEA

$13 billion

State Title I Program

·         $3 billion for Title I School Improvement Programs

·         $10 billion Part A grants to states

Institute of Education Sciences

$250 million

Institute of Educational Sciences

·         Incentive grants awarded on competitive basis

Pell Grants

$17.1 billion

US Department of Education (ED)

·         Discretionary and mandatory funding to increase maximum Pell grant funding

College work study

$200 million


·         Under FWS program

Teacher Quality

$300 million

State ED

·         $200 million Teacher Incentive Fund

·         $100 million for Teacher Quality Partnership Grants

State Fiscal Stabilization Fund

$53.6 billion

State Government (Governor)

·         $4.35 billion for state incentive grants

·         $650 million innovation fund

·         $39.75 billion to support K12 and Higher Education

·         $8.85 billion public safety

Head Start

$2.1 billion

State Level Agency

·         Avert cuts and cover more kids


Early Head Start

$1.1 billion

Administration on Developmental Disabilities (HHS)

·         Competitive grants in FY09 and FY10


Corporation for National and Community Service (including AmeriCorps)

$200 million

OSDOE Office of Inspector General

·         $89M to make additional awards to existing AmeriCorps State and national grantees

Health Care




Medicaid FMAP increase

$87 billion

Federal pays to state level Medicaid Program


HRSA (community health centers)

$2 billion

HHS Health Resources and Services Administration


HRSA (health workforce)

$500 million

HHS Health Resources and Services Administration

·         $5 million for health professionals training (public Health Service Act Title VII and VIII.





National Center for Research Resources

$1.3 billion


NCRR Renovation/Construction and Shared Instrumentation

Office of Director

$8.2 billion


·         $7.4 billion to Institutes and Centers

·         $330 million to NICHD

·         $800 million to the Office of the Director

Buildings & facilities

$500 million


Buildings and facilities account for intramural facilities

AHRQ Comparative Effectiveness Research

$1.1 billion


Agency for Healthcare Research and Quality (AHRQ) for comparative effectiveness research





CDC Prevention and wellness

$1 billion

HHS Secretary and  CDC

·         $300 million for immunization programs

·         $650 million for evidence based clinical and community based prevention and wellness strategies

·         $50 million to states to implement healthcare associated infections reduction strategies





VR State Grants

$540 million


·         Competitive grant opportunities


$3.95 billion

US Department of Labor

·         $2.95 billion State level grants for training/employment (youth/dislocated workers/adult activities) within 30 days

·         $50 million YouthBuild

·         $750 million in worker training (high growth)

·         $200 million dislocated workers assistance

Centers for Independent Living

$140 million



Social Security




SSA National Computer Center

$500 million

US Social Security Administration

·         Replacement of the National Computer Center

SSA backlog and claims

$500 million

US Social Security Administration

·         Processing disability and retirement workloads

One Time SSA Payments


US Social Security Administration

(Receive by late May 2009)

·         $250 to individuals who get Supplemental Security Income (SSI) or Social Security benefits

Human Services




Child Care Development BG

$2 billion


·         $255 million for Quality Improvement Programs

·         $93 million for improving infant/toddler care

·         $5 million Community Health Services

Community Services BG

$1 billion


Administration for Children and Families

·         $10 million to coordinated activities

·         Direct funding to local/district entities


The ARRA contains more than $100 billion in direct education funding for the next two fiscal years and $39 billion in bonding authority and tax credits.  Within these funds $13 billion for Title I of ESEA to be provided to school districts over two fiscal years.  According to the conference report, half of the funds will be made available on July 1, 2010.  Conferees expect states to use some of the funding for early childhood programs.  The conference report also states that $200 million is for the Innovation and Improvement account which would be used for the Teacher Incentive Fund (TIF) program.

For IDEA, the conference agreement provides $12.2 billion for Part B.  Within that total $400 million is for Section 619 of Part B for early childhood and $500 million is for Part C Early Intervention.  As in Title I, these funds are to be provided over two years to help mitigate the reduction in local revenues and state support to school districts.  The report states that the Dept. of ED shall provide half of these funds on July 1, 2010. 

The conference agreement provides $53.6 billion for a State Fiscal Stabilization Fund.  These funds are available upon enactment for critical education and other services.  These funds may only be used for activities authorized under the ESEA, IDEA, Carl Perkins, and for school modernization. Governors may use up to 17 percent ($8.2 billion) for public safety and other government services, which may include education services and higher education modernization, renovation and repairs. Governors will have to submit applications for these funds and provide certain assurances, including 3 key areas: 1. achieve equity in teacher distribution; 2. establish a longitudinal data system that includes elements of America COMPETES Act, and 3. enhance the quality of academic assessments relating to English language learners and students with disabilities.  The report also includes $650 million for an "Innovation Fund" awarded by the Secretary of ED.

Employment and Rehab Services

The ARRA includes $3.9 billion for Workforce Investment Act programs. Also included is $680 million for the Rehabilitation Services and Disability Research. Within the total provided, $540 million is available for Vocational Rehabilitation State Grants and $140 million for Independent Living programs. The $140 million funding for Independent Living Centers is intended to be allocated as follows: $18,200,000 for State Grants; $87,500,000 for Independent Living Centers; and $34,300,000 for Services for Older Blind Individuals.  Also included was funding for unemployment insurance intended to; modernize the unemployment compensation program, to add $25 to the weekly benefit, to continue extended benefits up to 33 weeks through December 31, 2009 and to temporarily suspend federal income tax on the first $2,400 of unemployment benefits per recipient for 2009.


$10.4B was allocated to the NIH, of which $8.2 billion went to the Office of the Director, of which $7.4 billion will be returned to Institutes and Centers, of which $330 million will go to NICHD.  NICHD is still sorting out its plans and guidelines.  The $800 million that goes directly to the Office of the Director is geared towards designing programs focusing on health and science problems with measurable progress within two years (Grant RFA-OD-09-003).  Additional funds will be used to align research activities with the overall purposes of the act. It will have to report on its spending in 30 days, 60 days, and 90 days, so things are still unfolding.  There will be a higher level of accountability for these awards, including not only scientific accomplishments but also how jobs are created or preserved.  NICHD will not be issuing new RFAs, as some other Institutes will be doing. The end date for spending is 9/30/10.

 There are three components of the ARRA Funding:

 1. Submitted and Scored Grants in the pipeline

·         R03s and R21s with meritorious scores may be funded.

·         R01s would have to be "repackaged" for 2 years of funding.  PIs are encouraged to work with their program officers to extract aims for the 2 year budget. The critical element here is to show how these projects will create new jobs as well as achieve scientific aims.  Decisions will be made on a case by case basis.

  2. Supplements to existing awards

·         These are still to be defined via guidelines yet to be disseminated from NIH and also from NICHD.  Perhaps these guidelines will be clearer next week when Melissa and I are scheduled to talk again.  Exactly how supplements will be handled remains unclear at this time.

·         Supplements to funded R01s and P01s are a possibility but exactly how they will be handled is currently unclear.

·         Supplements to P30s are also a possibility to support collaboration across centers as well as resources for cores at P30 centers.

·         Possibility for programmatic, IDDRC network-wide supplements (for training slots, equipment/instrumentation, and pilot studies).

·         NCRR has been allocated funds for shared instrumentation grants of up to $300M, which is a source we could tap into.

·         Supplements to T32s, F31 and F32 awards, and K awards are a possibility

  3. Challenge grants

·         The goal of this funding mechanism is to "jump-start" new areas of research. These grants would be funded by a separate pot of money out of the Office of the Director.  $100-200M will be allocated to the Challenge Grants, which will be awarded at the level of $500K/yr for 2 years (including indirects).

·         Each Institute/Center was asked to suggest topics for this pan-NIH RFA.

·         It is not currently known which topics were selected.  NICHD is not in control of this funding; CSR is.

Children and Families

The ARRA includes $2 billion for the Child Care and Development Block Grant, as proposed by both the House and Senate. The entire amount is available upon enactment. $255,186,000 of these funds is designated for quality improvement activities, of which $93,587,000 shall be for activities to improve the quality of infant and toddler care. The agreement includes bill language requiring States to reserve 1 percent of their allocation for benefit coordination services and to distribute the remaining funds directly to local eligible entities. It also permits States to increase the income eligibility ceiling from 125 percent to 200 percent of the Federal poverty level.

Within the total provided for Children and Families Services Programs, $50 million is provided to establish a new initiative to award capacity-building grants directly to nonprofit organizations it was intended that this program will expand the delivery of social services to individuals and communities affected by the economic downturn. Programs are expected to have clear and measurable goals, and must be able to evaluate the success of their program.


ARRA provides a total of $2.5 billion for HRSA. Of this, $500 million is to expand services provided at community health centers (details by state available at $1.5 billion is for health center construction, renovation and equipment (including health IT); and $500 million is for health professions programs ($300 million is allocated to the National Health Service Corps and the remaining $200 million is provided for primary care medicine, dentistry, public health and preventive medicine program, the scholarship and loan repayment programs authorized under PHSA under title VII  and title VIII).


AUCD is disappointed to report that the conference report provides only $1 billion for the Wellness and Prevention fund.  $300 million for immunization programs, $650 million for evidence-based clinical and

Community-based prevention and wellness strategies that deliver specific, measurable health outcomes that address chronic disease rates and $50 million to the states to implement healthcare associated infections reduction strategies.

Corporation for National and Community Service (CNCS)

The Corporation received funding in the American Recovery and Reinvestment Act (Recovery Act) to put approximately 13,000 additional AmeriCorps State and National and AmeriCorps VISTA members to work through national service, meeting needs of vulnerable populations and communities during the current economic recession. Funding from the Recovery Act may also be used to provide current grantees with relief from requirements to provide matching funds. The Corporation also received funding to improve its information technology systems.

Included within the act is $160 million for the operating expenses of the programs administered by the Corporation for National and Community Service (CNCS).  This is the program that provides funds for the National Service Inclusion Program to reach out to and include people with disabilities in service.

Within the total provided for Operating Expenses, the ARRA includes the following amounts:

·         $89,000,000 shall be used to make additional awards to existing AmeriCorps State and national grantees and to provide adjustments to awards made prior to September 30, 2010 for which the Chief Executive Officer of the CNCS determines that a waiver is warranted;

·         $6,000,000 shall be transferred to CNCS "Salaries and Expenses" for necessary expenses relating to information technology upgrades, of which up to $800,000 may be used to administer the funds provided for CNCS programs - the House proposed similar language with regard to management and oversight of funds and the Senate proposed similar language with regard to information technology upgrades;

·         Not less than $65,000,000, as proposed by the Senate, for the AmeriCorps Volunteers in Service to America (VISTA) program; and,

·         Up to 20 percent of the funding provided for AmeriCorps State and National grants may be used for national direct grants.

·         (5) $40 million for the National Service Trust.


The legislation contains three provisions relating to increased Medicaid funding for states.

·         It would suspend through fiscal year 2011 the reductions that some states would otherwise experience in the percentage of their Medicaid costs paid by the federal government.  (The percentage of a given state's Medicaid costs the federal government pays, known as the state's FMAP, is adjusted each year, but because the adjustment is based on economic data from previous years, there is a substantial lag.)  This "hold harmless" feature of the bill would prevent states from losing federal funding simply because economic conditions in the states were much stronger several years ago.

·         All states would receive a "base" 6.2 percentage point increase in their FMAP rate.  Thus in New York, where the federal government usually pays 50 percent of Medicaid costs, the base federal share for the period of assistance would be 56.2 percent.  In Mississippi, where the federal government usually pays about 76 percent of Medicaid costs, the base federal share would be 82.2 percent.

·         States experiencing poor economic conditions as indicated by a significant rise in unemployment - as most states are - would receive additional assistance.  Depending on the extent of the state's rise in unemployment, a state could receive a 5.5 percent, 8.5 percent, or 11.5 percent reduction in the share of Medicaid costs the state pays.  This reduction would apply to the state's share of Medicaid costs after taking into account the hold harmless provision and half of the 6.2 percentage point base increase.[3] (See the explanation below for further details of this computation.)

This fiscal assistance for states would be effective for the period October 1, 2008 through December 31, 2010.  A state's qualification for a higher level of assistance due to rising unemployment would be evaluated each quarter, and states would receive the additional assistance if their economic situation worsens.  While a state's additional assistance could be increased, no state's additional assistance would be reduced due to falling unemployment before July 1, 2010.

To receive any increased FMAP, however, a state's Medicaid eligibility levels must not be more restrictive than they were on July 1, 2008.  Restrictions on eligibility include changes that make it more difficult for recipients to meet procedural requirements for enrollment or periodic renewal of their coverage.  States that have restricted eligibility would be allowed to reverse their actions and qualify for an increased FMAP in the first calendar quarter in which they have restored their Medicaid eligibility.

Three states don't qualify for stimulus FMAP enhancements because they had changed their programs:  NC, SC, and VA.  However, it has been reported that HHS is working with each individually to try and fix the problem so they can receive the enhanced FMAP.  There are also three provisions relating to increased Medicaid funding for states from the Center on Budget and Policy Priorities.  For more details, see the full report: