111-5 ) provides funding for various education programs. Among these programs, ARRA includes the State Fiscal Stabilization Fund, which provides federal funding to states to support elementary, secondary, and postsecondary education. It will also analyze the constitutionality of the distribution of federal money to religious schools in the context of common questions raised by these provisions. P.L. 111-5, the American Recovery and Reinvestment Act of 2009

As passed by the House and Senate, ARRA includes a prohibition on the use of funds provided under Title XIV, the State Fiscal Stabilization Fund (SFSF). ARRA limits the use of money received under the SFSF to comport with the Establishment Clause of the First Amendment. In addition to making the funds available only to public elementary and secondary schools, the SFSF provides that money provided by the Fund to institutions of higher education may not be used for:
modernization, renovation, or repair of facilities –
(A) used for sectarian instruction or religious worship; or
(B) in which a substantial portion of the functions of the facilities are subsumed in a religious mission. Religious institutions of higher education are eligible to receive funds provided under the SFSF.
The American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) provides funding for various educational programs, including a State Fiscal Stabilization Fund. The State Fiscal Stabilization Fund (SFSF) provides federal funding to states to support elementary, secondary, and postsecondary education. Although federal money provided by the SFSF is available only to public elementary and secondary schools, public and private institutions of higher education are eligible to receive federal money from the SFSF. Because the Establishment Clause of the First Amendment limits the extent to which the government may provide funds to religious organizations, the SFSF also includes a provision that prohibits funds from being used for facilities with religious uses or purposes.
This report will provide a brief overview of the prohibition on the use of funds by institutions of higher education, including proposals considered by the House and Senate before ARRA was enacted. It will also analyze the constitutionality of the distribution of federal money to religious schools in the context of common questions raised by these provisions.