On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (ARRA). The Act commits $100 billion to education, with California education expected to receive over $8.5 billion. The largest part of the education stimulus package is the State Fiscal Stabilization Fund, of which California's slice is nearly $6 billion. The fund is split into two categories: the Education Block Grant and the Flexible Block Grant. With the largest portion of the education stimulus package contained in the State Fiscal Stabilization Fund, to be allocated between K-12 and higher education at the Governor's discretion, it is too early to know specific details on how higher education will be affected by the federal aid package. The state budget agreements include provisions whereby $1.8 billion in planned income tax increases and $948 million in adopted spending cuts will be rescinded if California receives $10 billion in federal stimulus funds. As the situation solidifies, staff will be better able to provide the Commission with more in-depth analysis of the ARRA and its benefits to California higher education institutions and the students they serve.