ED Cautions States Not To Play ‘Shell Games’ with Stimulus Funds

Meeting with Advocates Also Previews New Guidance, Addresses Lingering Questions

Washington, April 10 — The U.S. Department of Education put states on notice that it would closely monitor how they spend billions of dollars in stimulus money, but officials acknowledged that they had limited ability to curb some activities that violate the spirit of the law.

“If there’s any state that intends to use any portion of the education section of the stabilization fund for anything but education, it won’t be allowed,” said Jonathan Schnur, senior advisor to Education Department (ED) Secretary Arne Duncan.