ED Sets July Deadline for Stabilization Funds, Backtracks on Using Money for School Construction

Washington, May 26 — The U.S. Department of Education (ED) announced recently that states that don’t apply for their share of $48 billion dollars in stimulus funds by July 1 will lose the money.

Despite the fact that applications and guidance were published on April 1, only 22 states had their applications for economic stabilization funds approved as of press time. The stabilization funds are designed to protect state budgets from layoffs and other cuts sparked by the recession.

In other recent stimulus news, the department cautioned districts against using their stabilization funds for school construction.