Public schools in the United States are funded through a combination of local, state, and federal sources. As of the 2019-2020 school year, approximately 47.5% of funding came from state governments, 44.9% from local governments, and about 7.6% from the federal government. Federal Funding: The federal government's contribution, though the smallest, supports critical programs. Key initiatives include:
Title I Grants: These grants provide funds to school districts with large numbers of low-income students. In the 2015-2016 school year, nearly 56,000 schools received Title I funds, serving more than 26 million students. Approximately $14.6 billion was allocated for Title I grants during the 2019-2020 school year.
Individuals with Disabilities Education Act (IDEA): IDEA ensures children with disabilities receive quality special education services. In the 2020-2021 school year, 7.5 million students benefited from IDEA services, with $14.3 billion in federal funding allocated in 2022.
Child Nutrition Act: This act funds programs providing free or reduced-price lunches to eligible students. In the 2020 fiscal year, $23.6 billion was allocated for child nutrition programs.
State and Local Funding: The majority of public-school funding comes from state and local governments. State revenues are primarily generated from personal and corporate income taxes, sales taxes, and other sources, varying by state. Local funding largely depends on property taxes, which account for about 81% of local school revenue. Notably, in New Hampshire, more than 60% of total public-school funding is derived from property taxes—the highest percentage among states. Each state employs its own funding formula to determine the distribution of funds to school districts, leading to variations in funding sources and amounts across the country.