The American Recovery and Reinvestment Act (ARRA, Recovery Act) is now over two-and-a-half years old. Within that time frame, over $200 billion in new grants, loans, and contracts was awarded in order to spur economic growth, maintain employment, and invest in various national priorities. While the open grant opportunities have come and gone, their effects are still being felt as some of the most high profile programs continue to influence the national agenda.

President Obama's second State of the Union speech may have easily been titled "Investing in Innovation," borrowing from one of his signature education reform grant programs funded under the Recovery Act. Throughout this speech to the U.S. Congress and nation, Obama emphasized the imperative to support innovation for the health of the U.S. economy and future welfare of the country. While the speech was short on specific policy items or legislative goals, Obama made clear broad priorities going forward, including energy, education, and infrastructure.

Many grantseeking organizations can attest all too well to former Speaker of the House Tip O'Neil's famous quote that "all politics is local." For many public agencies, nonprofit organizations, schools, and other organizations, the decisions made at the state and federal levels extend far beyond their immediate influence or control, yet ultimately impact them the most. The annual budget and appropriations processes at the Federal level exemplify O'Neil's point, as the work conducted with respect to each significantly affects the opportunities, challenges, and prospects for local grantseekers.

It has been two years of high price-tag legislation, including the Troubled Asset Relief Program (TARP), American Recovery and Reinvestment Act (ARRA), Patient Protection and Affordable Care Act (ACA), and the upcoming debate over the extension of the 2001 and 2003 tax cuts. Given these kinds of historic legislation, Americans are experiencing something of a national sticker shock and demands for deficit reduction continue to grow. All of this is hardly auspicious news from the vantage point of grantseekers.

Like most components of the $787 billion Recovery Act passed into law in 2009, the $4.35 billion Race to the Top grant program often receives notice as "unprecedented" for its sheer size. With nearly every state in the U.S. facing a budget deficit or outright fiscal crisis, the billions for education funding represent a critically important source to keep local school districts afloat.

By Susannah Mayhall
June 2010 (GO Know)

The American Recovery and Reinvestment Act of 2009 infused an unprecedented sum of public funding into the struggling American economy, making over $700 billion available for education, healthcare, public safety, and more. The Recovery Act bolstered support for new initiatives such as broadband infrastructure and energy efficiency. These massive amounts of funding produced a flurry of interest from various private sector industries, all hoping to become involved and receive their share of the stimulus.

While the initial excitement of the Recovery Act may be decreasing, unparalleled levels of funding will continue to flow to schools across the country over the next several months under Recovery Act programs. On March 29th, Delaware and Tennessee were announced as the first two awardees under the much anticipated Race to the Top program. Approximately $4 billion will be distributed directly to states to drive education reform and states will be reapplying under the Phase 2 deadline of June 1, 2010.

In the health care arena, it would be inaccurate to claim that the funding realm has fully shifted to the "life after the recovery act" phase. After all, ARRA funds continue to flow through grant programs such as Communities Putting Prevention to Work (CPPW). CPPW provides funding to local and state health departments in their efforts to promote prevention and wellness, particularly in the areas of smoking, obesity and physical fitness.