Emergency Memo

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MOE requirement. A State that indicates that it meets the criterion for a wavier of the MOE
requirement must submit an application for such a waiver. A State seeking a waiver must
provide the Department with: (1) data that specifically address the MOE waiver criterion for the
applicable years; and (2) an assurance of the Governor or his/her authorized representative that
the State has available for inspection documentation that demonstrates that these data are
accurate, valid, and reliable. The Department is requesting clearance for Guidance on the
Maintenance-of-Effort Requirements in the State Fiscal Stabilization Fund Program. The
Guidance provides additional information on the statutory MOE requirements and the process
through which a State applies for an MOE waiver, and a sample of a waiver request form.
The Department is requesting that the Office of Management and Budget (OMB) clear the MOE
Guidance on an emergency basis. Failure to meet the MOE requirements could affect a State’s
ability to participate in the program. Therefore, it is extremely important that States have access
to the additional guidance on the requirements for receiving an MOE waiver and the level of
detail that will be needed to apply for an MOE waiver.
Since the passage of ARRA, OESE staff have worked with ED’s Budget Service and the Office
of General Counsel to develop a guidance that meets the intent and purposes of the Stabilization
program. Using the regular clearance process would put ED well past the 120-day mark for
awarding the Stabilization funds that are specified in the Act, which would clearly go against
Congress’s intent. In sum, not approving this emergency request would cause harm to many
states and the students they serve and would delay ED’s ability to award the funds to some States
in a timely manner.
The Stabilization Fund appears to be a one-time program. Therefore, we expect that the
emergency clearance of the MOE Guidance will be needed only for this year.
ED is requesting OMB approval by May 1, 2009.
Thank you for your prompt consideration of my request. If you have questions, please contact
Maria Worthen of OESE/AITQ at 202-205-5632 or [email protected].

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