American Recovery and Reinvestment Act of 2009: Independent Living Recovery Funds
April 1, 2009



The American Recovery and Reinvestment Act of 2009 (ARRA) appropriates significant new funding for the Independent Living (IL) programs authorized under Title VII, Chapter 1, Part B and Part C, and Chapter 2 of the Rehabilitation Act of 1973, as amended (Rehabilitation Act). The IL programs support services to individuals with significant disabilities and older individuals who are blind to maximize their leadership, empowerment, independence, and productivity, and to promote the integration and full inclusion of individuals with disabilities into the mainstream of American society.

The ARRA funds provide an unprecedented opportunity to implement innovative strategies to improve and expand IL services for individuals with significant disabilities and older individuals who are blind. Under the ARRA, $140 million in recovery funds are provided under three authorities:

Information about each State's formula allocation under the State IL Grants and OIB programs is available at: http://www.ed.gov/about/overview/budget/statetables/index.html This website also provides information about the State Fiscal Stabilization Fund (SFSF) under the ARRA, which is separate from the IL ARRA funds described in this fact sheet. This document focuses on the State IL Grants Program and the OIB Program. The Department will provide separate guidance regarding the CIL program authorized under Title VII, Chapter 1, Part C of the Rehabilitation Act.

Overview of ARRA

Principles: The overall goals of the ARRA are to stimulate the economy in the short term and invest in education and other essential public services to ensure the long-term economic health of our nation. The success of the part of the ARRA that provides support for programs under the Rehabilitation Act will depend on the shared commitment and responsibility of all involved in supporting improved outcomes for young people and adults with disabilities. Collectively, we must advance ARRA's short-term economic goals by investing quickly, and we must support ARRA's long-term economic goals by investing wisely, using these funds to strengthen IL programs, drive reforms, and improve results for people with disabilities.

Principles guiding the distribution and use of ARRA funds that are particularly relevant to the State IL Grants and OIB programs include:

  1. Spend funds quickly to save and create jobs. ARRA funds will be distributed quickly to states and other entities in order to avert layoffs and create jobs. They in turn are urged to move rapidly to develop plans for using funds, consistent with ARRA's reporting and accountability requirements, and to begin spending funds promptly to help drive the nation's economic recovery.

  2. Ensure transparency, reporting, and accountability. To prevent fraud and abuse, support the most effective uses of ARRA funds, and accurately measure and track results, recipients must publicly report on how funds are used. Due to the unprecedented scope and importance of this investment, ARRA funds are subject to additional and more rigorous reporting requirements than normally apply to grant recipients.

  3. Invest one-time ARRA funds thoughtfully to minimize the "funding cliff." ARRA represents a historic infusion of funds that is expected to be temporary. For the State IL Grants and OIB programs, these funds are available for obligation until September 30, 2011. These funds should be invested in ways that do not result in unsustainable continuing commitments after the funding expires.

Awarding IL ARRA Funds

Uses of IL ARRA Funds

Fiscal Issues

Accountability Principles

As with all federal funds, states are responsible for ensuring that the ARRA State IL Grants and OIB funds are used prudently and in accordance with the law.

Additional Information


Last Modified: 04/09/2009