Federally Funded Education Programs

With the approval of the 2006 Federal Education Budget, public education will see the first reduction in funding in ten years. An across-the-board cut of 1% was applied to federal discretionary programs to help fund the new Hurricane Education Recovery Act. As a result, many programs listed below are impacted by the 1% decrease, and you’ll see for some programs even greater decreases. Programs with increases/decreases of less than 1% are considered “no change” (NC).

MDR’s School Funding Alert Service is a Web-based sales and marketing lead service that tracks state and federal grant opportunities and awards. » indicates programs currently tracked by this service.

Adult Education and Family Literacy Act

Funding (In Millions)
Increase/Decrease -1%

This program provides formula grants to states for adult basic and secondary education and English as a second language (ESL). Programs are designed to help adults achieve their GED and obtain basic skills needed to attain employment and functionally contribute to society. Programs also integrate literacy projects designed to provide childhood education for children and literacy training for parents.
» Advanced Credentialing

Funding (In Millions)

Increase/Decrease -1%

The Advanced Certification or Advanced Credentialing program authorizes competitive grants to state education agencies (SEAs), local education agencies (LEAs), the National Board for Professional Teaching Standards (NBPTS), the National Council on Teacher Quality, or other certification or credentialing organizations. This program supports activities to encourage and assist teachers seeking advanced certification or advanced credentialing.
» Character Education
Funding (In Millions)
Increase/Decrease -1%
This is a discretionary grant program that provides financial assistance for character education activities in elementary and secondary schools and institutions of higher education. These activities may be carried out by state and local education agencies and by other public and private nonprofit organizations. The grant stipulates that the character education program: 1) is able to be integrated into classroom instruction and is consistent with state academic content standards and 2) is able to be carried out in conjunction with other education reform efforts.
Charter Schools
Funding (In Millions)
Increase/Decrease -1%
This program provides funding for the design and implementation of public charter schools. Increased emphasis is being placed on the success and accountability of these schools. Grants are provided on a competitive basis to states with charter school laws; states, in turn, make subgrants to authorized entities. Funds may be used for activities, such as purchasing equipment, materials, supplies, or dissemination of information about the charter school or the evaluation of their effectiveness.
» Comprehensive School Reform
Funding (In Millions)
Decrease -96%
Comprehensive school reform programs focus on schoolwide efforts to improve education. Funds may be used to select or design a school reform model that is research-based and will best help all students reach state performance standards.
» Early Childhood Professional Development
Funding (In Millions)
Increase/Decrease -1%
The program purpose is to enhance the school readiness of young children, particularly the disadvantaged. In an attempt to prevent young children from encountering reading difficulties once they enter school, the program seeks to improve the knowledge and skills of early childhood educators who work in communities that have high concentrations of children living in poverty. In particular, projects must utilize evidence-based practice focused on early reading and cognitive development for both the professional development activities and early childhood curricula.
Early Reading First
Funding (In Millions)
Increase/Decrease -1%
This competitive grant program seeks to enhance reading readiness for children in high-poverty areas and areas where a high number of students are not reading at grade level. It is aimed at 3- to 5-year-olds to help them prepare to learn to read.
» Education Technology State Grant

Funding (In Millions)
Decrease -45%

The primary goal of the Ed-Tech program is to improve student academic achievement through the use of technology in schools. It is also designed to assist students in crossing the digital divide by ensuring that every student is technologically literate by the end of eighth grade and to encourage the effective integration of technology with teacher training and curriculum development to establish successful research-based instructional methods. States may retain up to 5% of their allocations for state-level activities, and they must distribute one half of the remainder by formula to eligible local education agencies and the other half competitively to eligible local entities.
» Enhanced Assessment Grants
Funding (In Millions)
Increase/Decrease -1%
This program provides support to assist the states in developing the assessments required under No Child Left Behind (NCLB) legislation. States may use their formula funds to pay the costs of the development of additional standards and assessments required by the law. They may also use the funds to administer the tests and other accountability measures.
Even Start Family Literacy
Funding (In Millions)
Decrease -127%
Even Start is an education program for the nation’s low-income families that is designed to improve the academic achievement of young children and their parents, especially in the area of reading. Even Start offers promise for helping to break the intergenerational cycle of poverty and low literacy in the nation by combining four core components which make up family literacy: early childhood education, adult literacy, parenting education, and interactive literacy activities between parents and their children.
» Gifted and Talented Students
Funding (In Millions)
Decrease -13%
The purpose of the Jacob J. Javits Gifted and Talented Students program is to carry out a coordinated program of scientifically-based research, demonstration projects, innovative strategies, and similar activities to meet the special educational needs of gifted and talented students in elementary and secondary schools. The major emphasis of the program is serving students traditionally underrepresented in gifted and talented programs, particularly economically disadvantaged, limited English proficient, and disabled students, to help reduce the serious gap in achievement among certain groups of students at the highest levels of achievement.
Head Start
Funding (In Millions)
Increase/Decrease -1%
Head Start grantees are public agencies, school districts, or nonprofit groups. Head Start serves children ages 3 to 5 from low-income families. Early Head Start serves low-income pregnant women and families with toddlers or infants. The Head Start program, which falls under the department of Health and Human Services, provides an array of social and education services designed to equip young children and their parents with the skills they need to better transition into and experience success in school.
» Hurricane Education Recovery Act (HERA)
Funding (In Millions)
The Hurricane Education Recovery Act (HERA), which was authorized by President Bush on December 30, 2005, consists of three new grant programs to assist school districts and schools in meeting the educational needs of students displaced by Hurricanes Katrina and Rita and in helping schools that were closed as a result of the hurricanes to reopen as quickly and effectively as possible. The new programs are: 1) The Emergency Impact Aid for Displaced Students program will provide assistance to districts for the cost of educating students enrolled in public and nonpublic schools who were displaced by Hurricanes Katrina and Rita during the school year 2005-2006. 2) The Assistance for Homeless Youths program will provide a separate source of funding to state education agencies to address the needs of homeless students displaced by Hurricanes Katrina and Rita. The Department will use data on displaced public school students collected under the Emergency Impact Aid program to make allocations under the Assistance for Homeless Youths program. 3) The Immediate Aid to Restart School Operations program awards funds to the state education agencies (SEAs) in Louisiana, Mississippi, Texas, and Alabama. These SEAs, in turn, will provide assistance or services to districts and nonpublic schools to help defray expenses related to the restart of operations in, the reopening of, and the re-enrollment of students in elementary and secondary schools that serve an area in which a major disaster has been declared related to Hurricanes Katrina or Rita.
Impact Aid
Funding (In Millions)
Increase/Decrease -1%
The Impact Aid program provides payments to local districts that have a large number of students whose parents work on or who live on federal property, such as a military base. Funds offset the loss in local property taxes that usually are the major source for school funding. Funds are also available to help meet the added cost of educating those federally connected children with disabilities. Funds typically become part of a district’s general fund account and are used for basic expenses, such as teacher salaries, books, and supplies. Private schools are not eligible to receive Impact Aid funds.
» Improving Teacher Quality
Funding (In Millions)
Increase/Decrease -1%
The No Child Left Behind Act of 2001 consolidated the Class-Size-Reduction and Eisenhower Professional Development programs into a single, flexible formula grant for improving teacher and principal quality. The money can be used for a variety of purposes, such as hiring teachers to limit class sizes, providing professional development, and funding initiatives to retain highly qualified teachers.
» Innovative Education State Grants

Funding (In Millions)
Decrease -50%

This formula grant program under Title V assists states and local education efforts to improve student achievement by implementing broad-based reform efforts and other innovative education improvement practices. Very flexible uses of funds include curricular materials, professional development, software, technology, and school repair.
» Language Acquisition State Grants
Funding (In Millions)
Increase/Decrease -1%
The purpose of this formula program is to assist school districts in teaching English to Limited English Proficient (LEP) students and to help them meet the same challenging state standards required of all other students. Grant money may be used for services and activities, such as curriculum development, purchase of instructional materials, education software, tutoring and counseling, or to pay for personnel trained to provide services to Limited English Proficient students. The grant was formerly known as the Bilingual Education Grant.
Magnet Schools
Funding (In Millions)
Increase/Decrease -1%
These competitive funds are available to school districts who are under a court-ordered or federally mandated desegregation plan. Magnet programs are designed to support an enhanced curriculum and attract racially diverse student populations.
» Mathematics and Science Partnerships
Funding (In Millions)
Increase/Decrease 2%
This program seeks to encourage states, institutions of higher learning, districts, and schools to form partnerships to improve student performance in math and science. Funds may be used in a variety of ways, such as professional development, summer workshops, and distance learning programs.
Perkins Vocational and Applied Technology Act
Funding (In Millions)
Increase/Decrease -1%
This program supports equal access by special populations at the secondary and postsecondary levels to vocational and technology education activities, plus related professional development activities for teachers, counselors, and corrections educators. States receive formula grant funds; school districts then receive subgrants. Funds may be used to develop, disseminate, and field test curriculum materials and promote partnerships with appropriate entities.
» Reading First
Funding (In Millions)
Increase/Decrease -1%
This program provides assistance to states and districts in setting up scientific, research-based reading programs for children in Grades K to 3. States may use up to 20% of the money to provide professional development for teachers. States must distribute at least 80% of the money to districts through a competitive-grant process, giving priority to high-poverty areas. Funds may be used to purchase software and instructional materials and for staff development.
Rural Education Initiative
Funding (In Millions)
Increase/Decrease -1%
The funding is available for two programs. The first provides flexible grants to small, rural districts and allows them the added freedom in spending money under a few major ESEA programs. If a district did not qualify, it would be eligible for a second initiative, which provides flexible grants to rural districts with at least 20% of the students living in poverty.
» Safe and Drug-Free Schools

Funding (In Millions)
Decrease -15%

This program consists of two major programs: State Grants for Drug and Violence Prevention Programs and National Programs. State Grants is a formula grant program that provides funds to states and local school districts for a broad range of community and school-based prevention and education programs. National Programs provides funds for discretionary grants that focus on drug and violence prevention issues. Any activity financed under the program must meet “principles of effectiveness,” such as being based on scientifically conducted research.
» School Leadership
Funding (In Millions)
Increase/Decrease NC
The School Leadership program provides competitive grants to assist high-need local education agencies (LEAs) with recruiting, training, and retaining principals and assistant principals. A high-need LEA is defined as one that: 1) either serves at least 10,000 children from low-income families or serves a community in which at least 20% of children are from low-income families and 2) has a high percentage of teachers teaching either outside of their certification or with emergency, provisional, or temporary certification.
» Special Education (IDEA)
Funding (In Millions)
Increase/Decrease NC
The Individuals with Disabilities Act (IDEA) was reauthorized in November 2004. This program provides financial assistance to states to help them meet the educational and developmental needs of over 6 million children, ages birth through 21. The law focuses on increased expectations, more coordination and involvement by parents and the regular classroom teacher, and more professional development for all involved in educating children with disabilities. The law also permits the integration of funds into Title I Schoolwide Programs. Special Education services apply to a vast array of disabilities, including those with severe disabilities, the emotionally challenged and the severely and profoundly mentally challenged. IDEA grant categories include those to states and preschools, as well as grants for infants and toddlers.
» Title I
Funding (In Millions)
Increase/Decrease NC
This formula grant program is the largest of the Elementary and Secondary Education Programs and provides districts with extra resources to help improve instruction in high-poverty schools and ensure that poor and minority children have the same opportunity as their peers to meet challenging state academic standards. The No Child Left Behind Act of 2001 requires states to develop standards in reading and math and assessments linked to those standards for all students in Grades 3 to 8. Districts and schools must use Title I funds for activities that scientifically-based research suggests will be most effective in helping all students meet these standards.
» 21st Century Community Learning Centers
Funding (In Millions)
Increase/Decrease -1%
This program provides money for before- and after-school initiatives, weekend and summer programs that seek to advance student achievement. It allows grants not only to school districts but also directly to community-based organizations and other public or private entities, including faith-based groups, in rural and inner-city schools in nearly every state. Centers will provide opportunities for children and youth to participate in a variety of activities, including nutritional and health services and technology programs. Funds may be used for planning, implementing, or expanding learning activities and for other areas of instruction, enrichment, and recreation, including telecommunications and technology education. This is a competitive grant program that shifted from the federal government to the states under The No Child Left Behind Act of 2001.

Note: Links to available Web pages are for informational purposes only. Accuracy is not guaranteed by MDR.

The programs shown are those that MDR felt would be of the greatest interest to K-12 education marketers. It is not intended to be a comprehensive listing of all education programs.


800-333-8802 www.schooldata.com mdrinfo@dnb.com
Eastern Region
1 Forest Parkway
P.O. Box 907
Shelton, CT 06484-0947
T: 203-926-4800
F: 203-926-0784
Midwest Region
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Suite 2100
Chicago, IL 60603-1818
T: 312-263-4169
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Suite 1300
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T: 415-278-5250
Fax: 415-278-5252