Office of the Vice President for Global Communications

Tuesday, September 8, 2009

Economic stimulus legislation will provide boost to U-M

The economic stimulus and recovery legislation that Congress approved last week has a number of major provisions that will benefit U-M and other higher education institutions nationwide.

The legislation will increase student aid, provide billions in new research dollars and also attempts to support state budgets at a time when they are facing severe shortfalls.
The bill provides for a $500 increase in the Pell grant maximum, a new $2,500 education tax credit, $200 million more for work-study programs and $100 million for teacher enhancement grants. It also includes additional funding for the Health Professions Training Program and Nursing Workforce Development programs.

For research the legislation will provide $10.4 billion in additional support for the National Institutes of Health, $3 billion for the National Science Foundation, $2 billion for basic research sponsored by the Department of Energy (including $400 million for the new Advanced Research Project-Energy that will support cutting-edge, high-risk energy research), as well as additional funds for research supported by the National Institute of Standards and Technology, the National Oceanic and Atmospheric Administration and NASA. All of this funding will be distributed based on peer review.

To support state budgets, the recovery package provides $53.6 billion. Of that amount, $39.5 billion would be sent to states explicitly for K-12 and public higher education. The specific allocation of these funds will be determined by the governor. The funds specifically are to be used to back-fill state budget cuts and may be used for operating expenses and facility modernization.

For a summary of the legislation, go to