Due to the temporary nature of the funding, public school districts were repeatedly advised by the state General Assembly and Pennsylvania Secretary of Education to use the funds for one time expenditures like: acquiring equipment, making repairs to buildings, training teachers to provide more effective instruction or purchasing books and software.

However, several lawsuits were filed due to the nature of the funding of the project.

Although the act extended federal participation in relief for two more years, it changed the nature of the funding from loans to direct grants to the states.

The state insurance commissioner, Kay Doughty, said Private Capital Partners, an investment company in Purchase, N.Y., had failed to "specify the nature and source of the funding for the acquisition."

Due to the temporary nature of the funding, schools were repeatedly warned to use the funds for one time expenditures like acquiring equipment, making repairs or purchasing books and software.

Often funding is given subject to the provisions of a contract or agreement, the terms of which may be indicative of the nature of the funding.

He also turned down a film proposal for "Baby Beluga" because of the nature of the funding, which was based on exploitative advertising and marketing.