By late 2008, the United States was in the midst of its most severe economic recession since the 1930s, brought on by a collapse in real estate prices and exacerbated by the failure of many large banks and financial institutions. Heeding calls from economists, Congress and the Obama administration passed a historic law in early 2009 to stimulate the economy with $862 billion in new spending and tax cuts. This paper is the first in a four-part series examining the American Recovery and Reinvestment Act's of 2009 (ARRA's) effect on state spending for higher education. The forthcoming reports will provide an analysis of state allocations of State Fiscal Stabilization Funds (SFSF) to higher education, a study of how those funds were used in select states, and a look at the status of state higher education funding after the SFSF monies are no longer available at the end of fiscal year 2011. (Contains 3 tables and 9 notes.) [For related reports, see "The State Fiscal Stabilization Fund and Higher Education Spending: Part 2 of 4" (ED540795); and "The State Fiscal Stabilization Fund and Higher Education Spending Part 3: State Case Studies" (ED540796).]