The first round of funding in the federal government's $4.35 billion Race to the Top program for school system overhauls has been awarded. Out of the 40 states that submitted applications, 16 states made it into the final round, but only two states will collect money, Delaware and Tennessee.

Delaware will get about $100 million and Tennessee about $500 million in this first round of funding.

"We received many strong proposals from states all across America, but two applications stood out above all others: Delaware and Tennessee," Duncan said in a release announcing the winners. "Both states have statewide buy-in for comprehensive plans to reform their schools. They have written new laws to support their policies. And they have demonstrated the courage, capacity, and commitment to turn their ideas into practices that can improve outcomes for students."

The U.S. Department of Education will have about $3.4 billion available for the second phase of the Race to the Top competition.

"Members of the Jim Thorpe Area School District Board of Education seemed disappointed by the news, which was delivered by Superintendent Barbara Conway during the board's monthly meeting Monday evening.

"We will be applying for funds in the next round," Conway told the board.