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 law, the American Recovery and Reinvestment Act of 2009 (ARRA), included nearly $100 billion in one-time funding for new and existing education programs, a historic sum given that annual appropriations for federal education programs at the time were approximately $60 billion. This paper is the second in a four-part series examining these trends. Forthcoming reports will provide a study of how select states used SFSF funds 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. Division of ARRA Education Stabilization Funds by Education Sector and Year are appended. (Contains 3 tables and 14 notes.) [For related reports, see "The State Fiscal Stabilization Fund and Higher Education Spending in the States: Part 1 of 4. Issue Brief" (ED540794); and "The State Fiscal Stabilization Fund and Higher Education Spending Part 3: State Case Studies" (ED540796).]