Education Stimulus Boosts Treasuries Outside of 50 States

Did you know that U.S. states aren't the only ones to benefit from the government's $787 billion spending spree?

With most of the media attention focused on states, you might not have heard that U.S. territories, freely associated states and Indian groups also get a piece of the action. Granted, it's a small piece, but a piece nonetheless.

The Education Department will distribute $44.62 billion to states and other areas in the next 30 to 45 days, the department announced on March 7. Those funds do not include the $14,000 that goes to the Office of the Inspector General or the $53.6 billion State Fiscal Stabilization Fund, both of which bring the Education Department total to $98.24 billion. Of the stabilization fund, $8.8 billion goes to block grants that can fund key services including education, and $5 billion goes to incentive grants for which states can apply for starting at the end of March.

The territories snagged less than 2 percent of the funding that the Education Department has currently allocated while the freely associated states and Indian groups grab less than one percent. The commonwealth of Puerto Rico scored the most among the territories with $1.19 billion for education, which gives it more funding than 30 continental states.

The outlying territorial areas will split $268 million, or less than 1 percent, in state fiscal stabilization funds, part of which are used for education and part of which are flexible.

The Education Department has not released preliminary breakdowns for how much each state and territory will receive for homeless children's education, school improvement grants, impact aid construction, a teacher incentive fund, mandatory Pell grants, teacher quality enhancement and statewide data systems. But here are the details for other categories that the department has broken down.

U.S. territories

The U.S. territories include American Samoa, Guam, the Northern Mariana Islands, Puerto Rico and the Virgin Islands. The residents of these island chains can apply for U.S. citizenship and elect one delegate each to the House of Representatives, but do not receive the full constitutional rights that stateside residents do.

The territories can take home Education Department grants for the Elementary and Secondary Education Act Title I, educational technology, Individuals with Disabilities Education Act (IDEA) Part B, IDEA Part C for infants and families, vocational rehabilitation and independent living. They also receive federal work study funds. Puerto Rico receives funding for blind older individuals and Part B preschool grants as well.

Title I funds go to local educational agencies and school improvement. The IDEA Part B grants go to special education.

Education department totals

• American Samoa: $8.34 million
• Guam: $10.93 million
• Northern Mariana Islands: $3.34 million
• Puerto Rico: $1.19 billion
• Virgin Islands: $11.29 million

Indian funds

The stimulus package gives eligible Indian tribes Title I and educational technology grants. The Indian Self-Determination and Education Assistance Act outlines who can use the grants and what regulations apply.

Indians can use $4 million over two years to construct, rehabilitate and repair schools that the Bureau of Indian Affairs funds. The total amount they could receive from the Education Department is $77 million.

Freely associated states

After World War II, the United Nations established the Trust Territory of the Pacific Islands and gave administrative control over those territories to the United States. Puerto Rico later became a commonwealth, but the other three territories asked for independence.

The Federated States of Micronesia, the Republic of the Marshall Islands and the Republic of Palau signed compacts of free association with the United States. The island nations are independent, but have strong ties with the United States. They receive $75,114 for federal work study.

For the preliminary state breakdown of education funds, visit the U.S. Department of Education.

For the economic stimulus law, visit the American Recovery and Reinvestment Tax Act of 2009.

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