The American Recovery and Reinvestment Act (ARRA), signed in February 2009, included nearly $100 billion in new funding for the Department of Education (DOE). Over $36 billion of it remains unspent, and bills in both the House and Senate are calling for even more funding for teacher jobs. It is unlikely that billions more in federal spending will provide a long-term solution to state budget problems. Instead, it would prevent states from addressing fiscal problems, rethinking existing programs, and increasing efficiency. The primary goal of education funding in ARRA is to prevent job layoffs in the education sector. Instead of continuing to increase federal funding for education, policymakers should award states greater authority over how federal funds are spent. This flexibility will permit the innovative capacity of states to flourish and will encourage a true race to the top. (Contains 17 footnotes.)