Policy & Politics

Education Funding

Education news, analysis, and opinion about money, financing and budgets on the federal and state levels and coverage of philanthropy to school.

See also: Federal Budget/Funding, State Budgets/Funding, ESSER Funds

How much does the U.S. spend on education?
The U.S. spent about $946 billion on public K-12 schools in 2022-23, the most recent year for which statistics are available. The money comes from federal, state, and local governments, and the percentage coming from each source varies between and within states.



The average per-pupil spending was $16,526 in 2022-23, but four states (Connecticut, New Jersey, New York, and Vermont) and the District of Columbia spend more than $25,000 per student. On the other end of the spectrum, two states (Idaho and Utah) spend less than $11,000 per student on average. Read more statistics about U.S. schools.



Per pupil spending nationally in 2022-23 was up 5.7% over the previous year, not adjusted for inflation. This school year was one in which schools were spending federal pandemic relief aid. The federal government in 2020 and 2021 provided $190 billion in one-time, pandemic relief aid for education that schools had multiple years to spend. Read more about the impact of ESSER funds.
How much of public education is funded by the federal government?
12.7% of funding for K-12 public schools came from the federal government in 2022-23. In the four years before that, the federal government on average provided about 10% of total funding. The big jump over that time was mostly due to pandemic relief aid for schools. Read more.
Where does the funding for public schools come from?
According to the Census Bureau, almost 45% of public school funding came from states in 2022-23 and about 43% came from local sources, predominantly from local property taxes. In 2022-23 12.7% of all K-12 school funding came from the federal government. The federal share in 2022-23 was larger than in most years, as this was one in which schools were spending one-time pandemic relief aid.


The largest sources of federal school money pay for school lunch programs, services for low-income students (Title I), and services for students with disabilities (Individuals with Disabilities Education Act). Read more.
What qualifies a school for Title I?
Seventy percent of schools receive Title I funds. Schools get these grants based on the number of school-age children who live in their area and are from low-income families or are homeless, in foster care, or in facilities for neglected or delinquent children. Those children do not necessarily attend the districts’ schools. But, if at least 40% of a school’s students are from low-income families, the school can implement a schoolwide program and provide Title I-funded services to all students and not just those who themselves come from low-income families. More than 90% of students who receive Title I services are in schools with schoolwide Title I programs. Learn more about Title I.