The new federal stimulus law, the American Recovery and Reinvestment Act of 2009 (ARRA), offers Southern states a historic opportunity to improve public education from pre-school through college especially for low income students. ARRA allocates over $100 billion directly to the 15 states of the South for creating jobs and spurring economic renewal during the next two years, and more than one-third of these funds will go toward education. Never before has a federal economic recovery law recognized to this degree the central role that education plays in states' economic growth. As early as the end of March 2009, the US Department of Education will begin to send the first payments totaling $35 billion for education in Southern states. The total amount each Southern state receives will range from approximately $602 million in West Virginia to as much as $7.9 billion for Texas schools and students. Some funds must be spent in one year; other funds can be spent over two or three years. ARRA expressly advises states that these new funds are a "one-time funding opportunity" for stabilizing education budgets and improving schools. In a region plagued by a long history of underfunded education, ARRA presents an unprecedented opportunity to lessen the effects of the deep recession on education spending in the South. It will provide significant federal funding to help the South's low income students, now a majority in the South's public schools, as well as improve the region's low-achieving schools. Amid hard times, the South should make the most of this unique opportunity. Appended are: (1) ARRA Fiscal Stabilization Funds and State Education Budget Shortfalls 2009 & 2010; and (2) Per Pupil Revenues from ARRA Education Funds by Major Programs. (Contains 2 tables, 4 charts and 4 footnotes.)