This is the first in a quarterly series of special reports on the K-12 education implications of the federal government's economic stimulus package, the American Recovery and Reinvestment Act (ARRA). That the ARRA, which was signed into law in February, will pump nearly $100 billion--an unprecedented sum of federal money--into K-12 education is not in doubt. Nor is the legislation's potential to play a uniquely influential role in the affairs of districts and schools. What is at issue is the substance of that role. Since congressional deliberations began, much of the commentary about the ARRA has suggested that it will contribute mightily to the ongoing efforts to improve America's schools. The "New York Times" reported on Democratic congressional leaders' vigorous efforts to craft the law in a way that would ensure that the funding would be used for reform. Since its passage, Secretary of Education Arne Duncan has said many times that ARRA education funds must drive improvement. Significant media and education industry attention has been paid to the law's "Race to the Top" and "What Works" funds, billions of dollars designed to launch new initiatives and scale up those already working. For these reasons, the law's education components have been depicted as potentially among the most important engines for education reform in generations. This special report approaches these claims with a critical eye and ultimately concludes otherwise. (Contains 37 endnotes.) [The second part of this series, "$75 Billion in Formula Grants Failed to Drive Reform. Can $5 Billion in Competitive Grants Do the Job?" Education Stimulus Watch. Special Report 2 can be found at ED509614. To view "The Full Story on Race to the Top." Education Stimulus Watch. Special Report 3, see ED509615.]