Federal stimulus funding has influenced public education for more than a decade. Programs first introduced during the Obama administration helped stabilize school budgets after the 2008 recession. More recently, large federal relief programs during the COVID-19 pandemic provided historic funding for K-12 education. In 2026, districts are evaluating how these funds were spent and which initiatives should continue as stimulus programs phase out. According to national reports, many schools are choosing to spend their stimulus money in unique and much-needed ways.
Public Education Stimulus Package
Federal stimulus funding has been distributed to public schools during several major national crises. The of 2009 provided billions in funding to stabilize school budgets and support academic reform initiatives such as Race to the Top. Specifically, the new public school stimulus package is designed to provide specialized support and assistance to schools serving special education students, homeless children, and lower-income families with children.
While the 2009 stimulus included hundreds of millions in targeted education investments, more recent relief programs have been significantly larger. During the COVID-19 pandemic, Congress approved nearly $190 billion in education funding through the program to help schools address learning loss, expand technology access, and stabilize operations.
As schools debate ways to most effectively use the funds, the United States Education Secretary, Arne Duncan, asserts that school leaders should strive to think in new, different, and creative ways. For example,
