gibson, thanks very much. >> thank you. i >> lehrer: now, the battle between unions and school districts over new federal money. the newshour's special correspondent for education, john merrow, has our report. >> this is one of the largest investments in education reform in american history. >> reporter: when president obama announced the grant competition called "race to the top," educators across the country were eager to apply for a share of the $4.35 billion. >> finally, the federal government is really identifying... they're getting it. they're getting it. >> reporter: kerri leonard ellison, a member of the local school board in the small city of easton, pennsylvania, felt she was being heard at last. >> we want to be successful. we're determined to be successful. we need to be supported. >> reporter: with easton's one high school failing for the past six years, and only 50% of students scoring at grade level in math and reading, ellison felt the "race to the top" money could make the difference. >> this is huge. it's a huge opportunity for each and every child that's here. >> reporter: in early march, pennsylvania was one of 16 states chosen to come to washingt