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Alabama Department of Finance Federal Stimulus Information Center

State Fiscal Stabilization Fund (SFSF) Government Services Allocation

  Section 14002(b) of the ARRA authorizes a State to use its Government Services funds for “public safety and other government services”, including assistance for elementary and secondary education and public IHEs. In addition, the State may use these funds for modernization, renovation, or repair of public school facilities and IHEs, including modernization, renovation, and repairs that are consistent with a recognized green-building rating system, subject to the requirements in the ARRA. The scope of allowable activities must be determined on the basis of State law, subject to applicable requirements in the ARRA and other Federal laws, including the limited restrictions in the ARRA on the uses of funds.A State should expend funds from its Government Services Fund allocation in a manner that will help create jobs, reduce unemployment, stabilize and improve the State’s economy, and avert the need to raise taxes. The Department also encourages Governors to use these funds in ways that support State and local educational reform initiatives, especially activities that will enable the State to make progress in the areas related to the four education reform assurances provided in the State’s application for Stabilization funding.

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