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By Meagan Wiseley, University of New Mexico-Talk Radio News Service

Education Secretary Arne Duncan unveiled the final application of nationwide education reform Thursday: a state by state competition for federal dollars in exchange for proof of improvements in a variety of educational categories.

"We will award grants to the states that have led the way in reform and will show the way for the rest of the country to follow," Duncan said in a statement released Thursday.

The $4.35 billion competition, called Race to the Top, was passed by Congress as part of the American Recovery and Reinvestment Act last February.

Aside from the competitive aspect of the program, the amount of the grants awarded will be determined by a state's population of K-12th grade students. More populous states like California, New York and Texas could earn up to $700 million. Less populated states like New Mexico and Vermont stand to earn up to $75 million.

The program uses a 500 point system to determine the funds each state receives, with teacher and principal effectiveness amounting for 58 points alone.

“Race to the Top is absolutely a competition...We expect the winners to lead the way and blaze a new path for the future of school reform for years, and even decades, to come,” Duncan added.

President of the National Education Association (NEA), Dennis Van Roekel, applauded Duncan for putting the “spotlight on what needs to happen in our classrooms.” However, Van Roekel held some qualms over how teacher and principal effectiveness is measured.

“We are disappointed that the administration continues to focus so heavily on tying students’ test scores to individual teachers," Van Roekel said, adding that the evaluation “misses the mark.”