Statutory Prohibitions on an LEA's use of Education Stabilization (SFSF) Funds

SFSF Information  

In April 2009, the U.S. Department of Education released a guidance document on the State Fiscal Stabilization Fund Program

The following list is the statutory prohibitions on an LEA’s use of Education SFSF funds Section 14003 of the ARRA prohibits an LEA from using Education Stabilization funds for:

  • Payment of maintenance costs;
  • Stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public;
  • Purchase or upgrade of vehicles;
  • Financial assistance for students to attend private elementary or secondary schools, unless the funds are used to provide special education and related services to students with disabilities, as authorized by IDEA (Section 14011 of the ARRA);
  • Restoring or supplementing a “rainy day” fund;
  • Improvement of stand-alone facilities whose purpose is not the education of children, including central office administration or operations or logistical support facilities;
  • School modernization, renovation, or repair that is inconsistent with state law;
  • Any casino or other gaming establishment, aquarium, zoo, golf course, or swimming pool (See Section 1604 of the ARRA); and
  • Modernization, renovation, or repair of facilities used for sectarian instruction or religious worship, or in which a substantial portion of the functions of the facilities are subsumed in a religious mission. 

For more information on what is considered an allowable use of funds please see the U.S. Department of Education's Guidance on the State Fiscal Stabilization Fund Program.

Contact us by email or by phone at 512.936.3647 or join the Stimulus: Funds for Texas Education listserv.


Reporting Fraud, Waste, or Abuse of ARRA Funds  

Texas State Auditor's Office (SAO)

The SAO investigates allegations of fraud, waste or abuse involving state funds and resources, including ARRA funds. To report fraud, waste or abuse (or suspicion of fraud, waste or abuse) to the SAO, call the SAO Hotline at 800-TX-AUDIT (892-8348) or submit a report to the SAO's Online Reporting Hotline.


United States Department of Education (USDE) Office of Inspector General (OIG)  

The USDE OIG investigates allegations of fraud, waste and abuse related to federal education funds and federally funded programs, including ARRA funds.  To report fraud, waste, or abuse (or suspicion of fraud, waste or abuse) to the USDE OIG, contact the Special Agent in Charge for Texas (Thomas Utz Jr., (214) 661-9538, 1999 Bryan Street, Suite 1440, Dallas, TX 75201-6817); email; call 1-800-MISUSED (1-800-647-8733); or write the Inspector General’s Hotline, Office of Inspector General, U.S. Department of Education, 400 Maryland Avenue, SW, Washington, DC 20202-1500.  USDE OIG provides additional guidance for reporting at OIG Hotline:  Fraud Prevention.


For additional information, contact:

Division of NCLB Program Coordination
1701 North Congress Avenue
Austin, TX  78701

More Contact Information 

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Page last modified on 7/7/2011 10:21:21 AM.