U.S. Public Education Spending Statistics for 2025

by Imed Bouchrika, Phd

Co-Founder and Chief Data Scientist

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Public education sets the stage for a literate and productive citizenry. By making education accessible and affordable, more people can have opportunities to build their ideal careers and achieve economic prosperity. With rising tuition fees, more and more students and their families are pursuing postsecondary education through public school systems.

Higher spending on education correlates with higher economic outcomes for students. A study published in the Quarterly Journal of Economics revealed that “a 10% increase in per-pupil spending each year for all 12 years of public school leads to 0.31 more completed years of education, about 7% higher wages, and a 3.2 percentage point reduction in the annual incidence of adult poverty" (Jackson et al., 2016).

This article discusses relevant statistics on the education financing of the 50.694 million Americans who attend public school. It is hoped that policymakers, school administrators, and even teachers and students doing research on the current state of American education, including those interested in pursuing PsyD programs in Florida or any state, will find this guide a valuable resource. Here, one may know how much money is spent on education in the US.

Public Education Spending Statistics Table of Contents

1. State Rankings for Public Education Expenditure per Pupil
2. Expenditures of Public School Systems per Level of Institution
3. Revenue Sources of Public Education in the U.S.
4. Top 10 Largest Elementary-Secondary Public School System Finances
5. Comparative Statistical Data
6. How does teacher salary impact public education spending in the U.S.?
7. How does public education spending address educational equity and social mobility?
8. How do alternative funding models impact public education outcomes?
9. How do public education spending statistics impact school performance?
10. How does public education spending address special education and inclusive learning environments?
11. How does public education spending promote lifelong career growth?
12. The Role of Teacher Training and Development in Education Spending
13. How does technology integration enhance spending efficiency in public education?
14. How do accountability and transparency measures optimize education spending?
15. How does public education spending support vocational and technical training?

State Rankings for Public Education Expenditure per Pupil

How much does the government spend on education? In the fall of academic years 2017-2018, the average school budget spent by the United States was $14,891 per pupil enrolled in public elementary and secondary schools. Computed based on average daily attendance, per-pupil expenditure amounted to $15,946 (NCES, 2020). Moreover, the U.S. spent $38,709 per full-time-equivalent student of public degree-granting postsecondary institutions in the years 2018-2019.

New York is on top of the state rankings for public US education spending with $24,040 allotted per pupil, which is $16,416 more than the amount spent in Utah, the state at the bottommost of the US education budget list.

District of Columbia received the most funding among all states and ranked second on expenditure per pupil. Connecticut is the 3rd on the list, having spent $20,635 per pupil. It is followed by New Jersey, Vermont, Alaska, Massachusetts, New Hampshire, Pennsylvania, and Wyoming.

Expenditures of Public School Systems per Level of Institution

How much does the US spend on education? Below are key details on expenditure and revenue according to the most recent available data.

Early Childhood

In 2019, 49% of 3-to-4-year-olds and 86% of 5-year-olds were already enrolled in school. However, to date, the U.S. government still has not presented any expenditure report on early childhood education.

Elementary and Secondary

According to the Report on the Condition of Education 2021, published by the National Center of Education Statistics (NCES), the total expenditure of the United States on elementary and secondary education for the fiscal years 2017-2018 amounted to $762 billion. This included:

• Current expenditures (87.1%);
• Capital outlay (9.2%); and
• Interests on school debt (2.6%).

The total revenue from these levels of institution amounted to $761 billion, $59 billion of which is from federal sources, $357 billion from state sources, and $345 billion from local sources. Learn more about Title 1 schools and funding for young learners.

Postsecondary and Beyond

Total expenditure and revenue for public postsecondary institutions amounted to $386,707,398 and $408,931,242 consecutively for fiscal year 2017-2018, and $401,128,627 and $415,887,527 for fiscal year 2018-2019 (NCES, 2021). Title IV institutions are part of postsecondary schools. As illustrated below, state governments provide the largest percentage of the revenue of public-degree granting institutions.

While examining education financing, it’s important to consider opportunities for further education. If you’re interested in advancing your career, you might want to explore options like affordable online MSW programs, which can provide you with valuable skills and knowledge for the future.

Revenue Sources of Public Education in the U.S.

Public education in the U.S. is largely financed by state (46.8%) and local (45.3%) sources, while the remaining 7.8% is contributed by federal sources. Below is the list of specific sources of revenue per category for public schools. Below are more school funding statistics.

Federal Sources

• Title I of the Elementary and Secondary Education Act (ESEA) provides financial assistance to agencies and schools with a high percentage of pupils coming from low-income families.
• Child Nutrition “includes grants received under Child Nutrition Act programs (e.g. National School Lunch Act, School Breakfast Program, Special Milk Program, etc.)" (NCES, 2019).
• Individuals with Disabilities Education Act (IDEA) provides funding for free education of students ages 3-21 with disabilities.
• Impact Aid Program provides funding for federal property payments, basic support payments, children with disabilities payments, and construction grants.
• Bilingual Education Act provides funding for the needs of limited English speaking ability (LESA) students.
• Indian education
• Math, science, and professional development include “grants received under Title II, Parts A and B of the Elementary-Secondary Education Act (ESEA) as reauthorized by the Every Student Succeeds Act (ESSA)" (NCES, 2019).
• Safe and drug-free schools is “distributed under Title IV of ESEA as reauthorized by ESSA" (NCES, 2019).
• Vocational and technical schools include “grants authorized by the Carl D. Perkins Career and Technical Improvement Act, as well as other grants directly related to vocational education" (NCES, 2019).
• Other and unclassified, including “revenues from 21st Century Community Learning Center programs, federal grants for adult education, and other federal revenues through the state. Also includes federal revenues received through the state that were unreported within any of the program-specific categories in this table" (NCES, 2019).

State Sources

• Special education programs include “revenues for the education of physically and mentally disabled students."
• Compensatory and basic skills include “revenues from state compensatory education for ‘at risk’ or other economically disadvantaged students, including migratory children and orphans."
• Bilingual education, gifted and talented, and vocational education programs
• Other, including “general formula assistance, staff improvement programs, school lunch programs, capital outlay and debt service programs, transportation programs, all other revenues from state sources, state payments on behalf of the local education agency, and unspecified state revenue" (NCES, 2019).

Local Sources

• Property tax and parent government contribution are “determined on the basis of independence or dependence of the local school system and are mutually exclusive" (NCES, 2019).
• Private sources include “tuition fees, transportation fees, textbook sales and rentals, school lunch revenues, district activity receipts, other student fees, and private contributions" (NCES, 2019).
• Other, including “rents and royalties, sales and services, interest earnings, and other local revenues" (NCES, 2019).

Public school systems across states vary in terms of the distribution of revenue sources. In 22 states, 50% or more came from state sources. Meanwhile, in 16 states 50% or more came from local sources.

Top 10 Largest Elementary-Secondary Public School System Finances

Five out of the 10 of the largest elementary-secondary public school systems come from Florida. This is based on enrollment data during fall 2014 reported to NCES on the Common Core of Data (CCD) agency. Below is the complete list of the top 10 schools with their total revenues and expenditures during the fiscal year 2015. Learn more about the best college towns and cities in America if you’re researching postsecondary education.

Here are some insights into the above data:

• New York City has the highest per-pupil spending on the list, amounting to $21,980.
• Clark County has the lowest per-pupil spending on the list, amounting to $8,254.
• Hillsborough County has the highest percentage of revenue from federal sources: 14.9%.
• Los Angeles United has the highest percentage of revenue from state sources: 62.4%.
• Houston has the highest percentage of revenue from local sources: 67.8%.

Comparative Statistical Data

It is important to benchmark education expenditure against key indicators such as GDP and taxpayer’s income to be able to assess it better.

Percentage of GDP Spent by the U.S. on Education

At the beginning of the 20th century, the percentage of GDP spent by the U.S. on education was only 1%. In 2017, that figure increased to 6.1%, higher than the average of the 35 member countries of the Organization for Economic Cooperation and Development (OECD), which amounted to only 4.9% of GDP. 

The U.S. reported 3.6% of GDP spent on the elementary and secondary level and 2.6% on the postsecondary level. Overall, it ranked 6th on the list of OECD countries spending the highest percentage of GDP on education.

Percentage of Taxpayer’s Income Spent on Education by State

Alaska ranks 1st on state spending on education as a percentage of taxpayer’s income (5.6%). The bottommost on the list, District of Columbia, spends only 2% in this respect. Below is the detailed report per state.

How does teacher salary impact public education spending in the U.S.?

Teacher salaries play a critical role in public education spending and directly affect the quality of education provided to students. While public education spending encompasses various elements, teacher compensation is one of the largest expenditures for school districts. Here's how teacher salaries influence education spending:

• Budget allocation: A significant portion of the education budget is devoted to teacher salaries and benefits. In many states, salaries account for more than half of a school district’s total expenditure. High teacher salaries often correlate with higher overall per-pupil spending, as school districts strive to attract and retain quality educators.
• Teacher shortages: In regions where teacher pay is low, schools often struggle to fill positions with qualified educators. This leads to larger class sizes or the hiring of less experienced or non-certified teachers, which can negatively impact student outcomes.
• Disparities across states: There is a wide variation in teacher salaries across different states and districts, often reflecting disparities in education funding. For example, teachers in states with higher per-pupil spending, such as New York and Massachusetts, tend to earn significantly more than those in lower-spending states like Mississippi or Oklahoma.
• Impact on teacher retention: Competitive salaries contribute to higher retention rates among teachers. Districts that offer lower salaries often face high turnover rates, which disrupts student learning and requires additional resources to recruit and train new teachers.

How does public education spending address educational equity and social mobility?

Analyzing the role of funding in promoting equitable educational opportunities is essential. Targeted investments can reduce disparities by ensuring that underfunded schools receive resources for infrastructure improvements, academic support, and specialized programs. These strategies contribute to improved student retention and broaden access to career pathways, which in turn foster social mobility. In regions where budget gaps exist, enhanced allocations help create a balanced learning environment, offering underserved communities chances to excel. Moreover, linking quality education with career-oriented options—such as accelerated online associate degrees—is instrumental in driving long-term economic and societal benefits.

How do alternative funding models impact public education outcomes?

Alternative funding models offer a complementary strategy to traditional public financing by incorporating private partnerships, community bonds, and philanthropic investments. These alternative approaches provide targeted support for innovative programs, infrastructure enhancements, and tailored educational initiatives that may not be fully addressed through standard budgets. Leveraging collaborations with businesses and local organizations enables schools to access additional resources, foster experiential learning, and reduce dependency on fluctuating governmental allocations. Such diversified funding can also catalyze career readiness initiatives, exemplified by programs like the quickest associates degree, which establish direct pathways for accelerated career advancement. Robust governance and clear accountability measures are vital in these models to ensure that supplemental funds are effectively managed and contribute to improved educational outcomes and sustainable community development.

How do public education spending statistics impact school performance?

Public education spending statistics play a pivotal role in shaping the quality of education students receive across the United States. Higher investment in education generally leads to better educational outcomes, such as improved student performance, higher graduation rates, and enhanced overall school quality. Understanding how funds are allocated and spent is crucial for policymakers and education professionals who are working to close achievement gaps and improve educational standards.

The impact of funding can be seen in various aspects of the educational system, from the quality of teaching staff to the resources available for students. For example, states that allocate more funding per pupil tend to have better teacher-to-student ratios, access to updated educational materials, and increased opportunities for extracurricular programs. Furthermore, investment in infrastructure, such as modernized classrooms and technology, can foster a more conducive learning environment.

For students seeking to further their education beyond high school, understanding these statistics also highlights the importance of securing sufficient funding for higher education. While public funding supports education through K-12, students pursuing further studies, like cheap online masters degrees, can explore affordable options that provide valuable credentials at a lower cost, enabling career advancement without accumulating overwhelming debt.

Ultimately, effective allocation of educational funds ensures that all students, regardless of their background, have equal opportunities to succeed academically and professionally.

How does public education spending address special education and inclusive learning environments?

Effective allocation of public education spending toward special education and inclusive learning environments plays a fundamental role in meeting diverse student needs. Targeted investments in adaptive technologies, specialized curricula, and dedicated support services ensure that students with disabilities have access to equitable learning opportunities. Data-driven funding strategies foster an environment where continuous improvement and innovative practices can be implemented, while robust fiscal oversight ensures that allocations directly contribute to enhanced instructional outcomes. Integrating research-led approaches, such as those outlined in doctoral programs online, further supports the development of inclusive and effective educational initiatives.

How does public education spending promote lifelong career growth?

Strategic investments in public education not only enhance immediate classroom outcomes but also create pathways for continuous professional development and career advancement. Such funding supports initiatives that integrate career guidance, skills workshops, and alternative education models, enabling learners to seamlessly transition between academic and professional environments. This diversified approach includes fostering partnerships with industry and facilitating access to flexible learning options, such as easy online degree programs, which prepare students for evolving workforce demands and support sustained career growth.

The Role of Teacher Training and Development in Education Spending

Teacher training and professional development are integral components of effective public education spending, directly influencing both instructional quality and student outcomes. Allocating funds towards comprehensive teacher education programs can ensure that educators are better equipped with modern teaching methodologies, subject-specific expertise, and the ability to cater to diverse student needs. Research indicates that well-trained teachers significantly enhance student performance, reduce dropout rates, and improve overall classroom outcomes.

Moreover, teacher development initiatives often include workshops, certifications, and degree programs to help educators stay current with educational advancements. For those in the teaching profession or aspiring to join it, exploring pathways such as accelerated online bachelor degrees can offer a flexible and cost-efficient method to obtain the necessary credentials. These programs not only enable professionals to transition into teaching faster but also help school districts bridge teacher shortages without compromising quality.

Investments in teacher support systems, such as mentorship programs and collaborative learning opportunities, also contribute to a more engaged and effective workforce. When coupled with adequate financial backing, these initiatives create a sustainable model for maintaining high teaching standards across public schools. This ensures that public funds are not only spent but invested in the long-term success of students and educators alike.

How does technology integration enhance spending efficiency in public education?

Leveraging digital tools and data analytics has become a pivotal strategy for optimizing budget allocations and enhancing administrative efficiency within public education. Modern technology solutions streamline resource management, reduce operational costs, and create scalable platforms for instructional delivery. Institutions employing these innovations can better monitor spending, target investments to areas with the highest impact, and foster more agile financial planning. Moreover, incorporating data-driven methods enables academic leaders to assess performance outcomes against expenditure, ensuring that reforms are both effective and sustainable. Education professionals exploring career advancements can benefit from programs such as accelerated online degree programs, which equip them with the skills necessary to implement and manage innovative technology solutions.

How do accountability and transparency measures optimize education spending?

Robust accountability measures and clear budgetary transparency are pivotal for ensuring that allocated funds quantify tangible educational outcomes. Regular external audits, performance evaluations, and community oversight minimize misallocation and drive fiscal discipline. These strategies not only reinforce trust among taxpayers and stakeholders but also help identify inefficiencies and redirect resources to high-impact programs. For individuals seeking to further their education, exploring options such as no application fee online colleges can offer a cost-effective pathway toward acquiring skills crucial for sustaining and improving these accountability frameworks.

How does public education spending support vocational and technical training?

Targeted investments in vocational and technical training programs enhance workforce readiness by aligning curriculum with industry demands. Allocating dedicated funds supports the acquisition of advanced tools, modernizes training facilities, and fosters partnerships with employers to develop job-specific skills. These investments create bridges between academic learning and practical, skills-based applications, thereby expanding opportunities for students to pursue technical careers. Furthermore, integrating innovative delivery methods through reputable institutions such as an online technical school helps ensure that program offerings remain flexible and current in response to evolving market requirements.

Projected Financial Expenditure for Public School Systems

Total enrollment in public and secondary schools is expected to reach 51.419 million in Fall 2028. Per pupil current expenditure is projected to then be $13,800. This is equivalent to a 12% increase in expenditure from 2015-16 to 2028-29.

In 2028, NCES also projected that there will be 7% more American Indian/Alaskan Native students, 8% more Hispanic students, 20% more Asian/Pacific Islander students, and 51% more multiracial students in public elementary and secondary schools. This means that public education financing will affect more minorities in the future.

As you consider these projections, you might be wondering, “What can you do with a psychology degree?" Exploring career opportunities can be a crucial part of making informed educational and professional decisions. Ideally, quality education should be accessible to all American citizens and documented immigrants through public school systems. However, the increasing residential segregation, along with the fact that America is one of the three OECD countries that spend more on rich neighborhoods than on poor neighborhoods (The Economist, 2015) makes the American Dream harder to reach for people relying on public education.

Key Insights

• Importance of Public Education: Public education plays a crucial role in developing a literate and productive citizenry, providing accessible and affordable opportunities for economic prosperity.
• Economic Impact: Increased spending on education correlates with better economic outcomes, including higher educational attainment, increased wages, and reduced poverty rates.
• Per-Pupil Spending: In 2017-2018, the average per-pupil expenditure in U.S. public schools was $14,891, with significant variations between states. New York spends the most per pupil, while Utah spends the least.
• Funding Sources: Public education in the U.S. is primarily funded by state (46.8%) and local (45.3%) sources, with the federal government contributing 7.8%.
• Expenditure Breakdown: The total expenditure on elementary and secondary education in 2017-2018 was $762 billion, with the majority spent on current expenditures, followed by capital outlay and interest on school debt.
• Postsecondary Education: Expenditures for public postsecondary institutions in 2018-2019 amounted to over $401 billion, with revenues slightly higher, indicating a robust financial structure.
• Top Funding Recipients: The District of Columbia, New York, and Connecticut are among the top spenders per pupil in the U.S., highlighting disparities in funding across states.
• Future Projections: By 2028, total enrollment in public schools is expected to increase, with a significant rise in minority student populations, necessitating more inclusive and equitable funding strategies.

FAQ

1. What is the average per-pupil expenditure in U.S. public schools? As of the 2017-2018 academic year, the average per-pupil expenditure in U.S. public schools was $14,891. This figure varies significantly by state, with New York spending the highest amount per pupil and Utah the lowest.
2. How does public education funding impact economic outcomes for students? Higher spending on education is associated with better economic outcomes, including increased years of education, higher wages, and reduced poverty rates. A 10% increase in per-pupil spending for 12 years leads to 0.31 more years of education and 7% higher wages.
3. What are the primary sources of funding for public education in the U.S.? Public education in the U.S. is primarily funded by state sources (46.8%) and local sources (45.3%), with the federal government contributing 7.8%. These sources include property taxes, state aid, and federal grants.
4. Which states spend the most and least on public education per pupil? New York spends the most on public education per pupil at $24,040, while Utah spends the least at $7,574 per pupil. The District of Columbia also ranks highly in terms of expenditure per pupil.
5. What is the total expenditure on elementary and secondary education in the U.S.? For the fiscal year 2017-2018, the total expenditure on elementary and secondary education in the U.S. was $762 billion, with the majority allocated to current expenditures, followed by capital outlay and interest on school debt.
6. How are public postsecondary institutions funded and what are their expenditures? Public postsecondary institutions in the U.S. had expenditures amounting to over $401 billion for the fiscal year 2018-2019, with revenues slightly higher at $415 billion. State governments provide the largest percentage of revenue for these institutions.
7. How is the funding for public education distributed across different educational levels? Funding for public education is distributed across early childhood, elementary, secondary, and postsecondary levels. However, specific expenditure reports for early childhood education are not yet available.
8. What are the projected trends for public school enrollment and expenditure by 2028? By 2028, total enrollment in public schools is projected to reach 51.419 million, with a 12% increase in per-pupil current expenditure. There will also be a significant increase in minority student populations, necessitating more inclusive and equitable funding strategies.
9. What challenges do disparities in public education funding present? Disparities in public education funding create inequities in educational opportunities, particularly affecting students from low-income and minority backgrounds. These disparities can hinder efforts to provide equal access to quality education for all students.
10. What are the key sources of federal funding for public education? Key sources of federal funding for public education include Title I grants for low-income students, IDEA funding for students with disabilities, and various grants for nutrition, bilingual education, and vocational and technical education.

References:

• De Brey, C. Snyder, T.D., Zhang, A., and Dillow, S.A. (2021). Digest of Education Statistics 2019 (NCES 2021-009). National Center for Education Statistics, Institute of Education Sciences, U.S. Department of Education. Washington, DC. https://nces.ed.gov/programs/digest/
• Educational Finance Branch (2017). Public Education Finances: 2015. U.S. Census Bureau, Economics and Statistics Administration, U.S. Department of Commerce. Washington, DC. https://www.census.gov/library/publications/2017/econ/g15-aspef.html
• Hussar, W.J., and Bailey, T.M. (2020). Projections of Education Statistics to 2028 (NCES 2020-024). U.S. Department of Education, Washington, DC: National Center for Education Statistics. https://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2020024
• Irwin, V., Zhang, J., Wang, X., Hein, S., Wang, K., Roberts, A., York, C., Barmer, A., Bullock Mann, F., Dilig, R., and Parker, S. (2021). Report on the Condition of Education 2021. U.S. Department of Education. Washington, DC: National Center for Education Statistics. https://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2021144.
• Jackson, K., Johnson R., & Persico, C. (2015). The Effects of School Spending on Educational & Economic Outcomes: Evidence from School Finance Reforms. The Quarterly Journal of Economics 131(1), 157-218. https://gspp.berkeley.edu/faculty-and-impact/publications/the-effects-of-school-spending-on-educational-economic-outcomes-evidence-fr
• Revenues and Expenditures for Public Elementary and Secondary School Districts: FY 17 (2020). Institute of Education Sciences, National Center for Education Statistics, U.S. Department of Education. https://nces.ed.gov/pubs2020/2020303.pdf
• OECD (2020), Education at a Glance 2020: OECD Indicators. OECD Publishing, Paris. https://doi.org/10.1787/69096873-en.
• The Economist. (2015, January 22). America’s new aristocracy. https://www.economist.com/leaders/2015/01/22/americas-new-aristocracy
• US Government Education Spending History with Charts a usgovernmentspending.com briefing. (n.d.). U.S. Government Spending. http://usgovernmentspending.com/education_spending
• U.S. Public Education Spending Statistics. (2021, April 22). EducationData. https://educationdata.org/public-education-spending-statistics