It looks like it doesn't. The Washington Post reports:
As Education Week points out, "But $1 billion would be contingent on Congress passing a reauthorization of the ESEA. That's highly unusual, as Duncan acknowledged on the call."
To grease the legislative wheels, Education Secretary Arne Duncan said, the administration will reserve $1 billion to fund programs that may emerge through a revision of the 2002 law. In addition, he said, President Obama is proposing to raise elementary and secondary education spending by $3 billion in the fiscal year that begins in October.
In addition to that clash--recall, after all, that Congress, not the President, holds the purse strings--the Post points out that state revenues are declining, and there's a growing need from states for federal aid:
Prominent education advocates said they welcomed more funding. But state budgets, which account for far more of education spending than the federal share, are under enormous pressure because of declining tax revenue. There is huge demand for federal aid for special education and programs for the disadvantaged. And Obama is pushing a raft of initiatives on charter schools, teacher performance pay and other issues.
"Obviously, you're no longer talking about a freeze, and that's moving in the right direction," said Joel Packer, director of the Committee for Education Funding, which represents dozens of education groups. "But there are still going to be a lot of unmet needs that education advocates are going to be working with Congress to try to address."