Education Secretary Arne Duncan announced today that only Delaware and Tennessee will get funding to implement their "Race to the Top" program.
Georgia finished third, but officials say they will apply again in June.
Duncan says what sets Delaware and Tennessee apart from Georgia and others was the fact that their education reform proposal touches 100% of students.
Both states also had full buy-in from teachers.
Governor Perdue issued this statement:
“We were hoping to be among the Final Four in the Race to the Top competition, but unfortunately this time only two winners were chosen. I spoke with U.S. Education Secretary Arne Duncan this morning and he complimented Georgia on our strong application and commitment to education reform.
“I promised him Georgia will reapply in June and we will be tough to beat in the second round of awards that will be announced this fall.
“The Department will provide us valuable feedback on our application, and I am confident that we are a top seed heading into round two. I want to especially thank the 23 systems that have joined with Georgia for this competition, and we look forward to celebrating with them later this year.”