ED Lifts Administrative Cap for Title I, IDEA Stimulus Funds

Washington, Oct. 27 — Beginning on Nov. 27, states will be able to use a larger share of their two biggest formula grants to defray the costs of significant new data collection requirements mandated by the American Recovery and Reinvestment Act (ARRA).

A new regulation published today in the Federal Register allows states to lift statutory caps on the use of those funds for Title I, Part A and the Individuals with Disabilities Education Act (IDEA). According to the U.S. Department of Education (ED), this will allow states to deduct an additional $41 million from those two programs to cover ARRA administrative expenses. The money will come from the share of funds that otherwise would be distributed to school districts.