This funding goes to states for teacher training -- or to pay for teachers to reduce class size. More commonly these days, the funding is being used to avoid sharp class size increases. All states and districts receive these funds currently, though districts with more disadvantaged kids get a larger share.
Nationwide, while the number of public K-12 teachers and other school staff fell by 221,000 since 2008, the number of students increased by 1,120,000. In NY state, the total number of teachers in New York state public schools fell by about 26,000 between 2008-2015, according to NYSED statistics.