Where does federal education money go?

Asked by: Brielle Kub  |  Last update: June 15, 2025
Score: 4.9/5 (67 votes)

The majority of Department of Education funding goes to student financial aid. Table showing the breakdown of Education Department expenses by sub agencies, 2024.

Where does federal education funding go?

Federal education funding is distributed to states and school districts through a variety of formula and competitive grant programs. While the federal government contributes about 12 percent of direct funding for elementary and secondary schools nationally, the amount varies considerably from state to state.

Where does federal student loan money go?

Typically, the school first applies your grant or loan money toward your tuition, fees, and (if you live on campus) room and board. Any money left over is paid to you directly for other education expenses.

What does the Department of Education pay for?

The majority of Department of Education funding goes to student financial aid. Federal Student Aid, an office of the U.S. Department of Education, is the largest provider of student financial aid in the nation. FSA makes postsecondary education possible for more than 9.7 million students each year.

What does the federal government do with education?

The U.S. Department of Education is the agency of the federal government that establishes policy for, administers and coordinates most federal assistance to education. It assists the president in executing his education policies for the nation and in implementing laws enacted by Congress.

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How much money does the federal government spend on education?

In 2021, the federal government provided 11 percent of total revenues for elementary and secondary education ($88 billion), states provided 46 percent ($384 billion), and local governments provided 44 percent ($365 billion).

What are federal education benefits?

Federal student aid from the Department of Education covers such expenses as tuition and fees, housing and food, books and supplies, and transportation. Aid can also help pay for other related expenses, such as a computer and dependent care.

Who benefits from the Department of Education?

Federal programs benefit all students, and special programs exist to serve individuals with disabilities, those who live in poverty, American Indians, immigrants and those with limited English proficiency.

What does education money pay for?

ED funding for grades K-12 is primarily through programs supporting economically disadvantaged school systems: Title I provides funding for children from low-income families. This funding is allocated to state and local education agencies based on Census poverty estimates. In 2023, that amounted to over $18 billion.

What does the U.S. Department of Education pay for?

A vast majority of the department's budget, or $120 billion, goes to federal student aid programs. That includes loans and grants to help people pay for college and other post-secondary education.

Who benefits from federal student loans?

If you have financial need, you may qualify for a loan for which the government pays the interest while you're in school on at least a half-time basis and during certain other periods. This type of loan is called a "subsidized loan."

Where does my FAFSA money go?

Typically, your college applies grant or loan money toward your tuition, fees, and, if you live on campus, room and board. Any money left over is paid to you for other expenses.

Can you use FAFSA money to buy a car?

Cars: Using your student aid for transportation can include gas and maintenance for a pre-owned car, but you cannot use your aid to buy a car during your time in college. If you buy the car using some other means, you can use the aid for gas and repairs, however.

What does the Department of Education actually do?

The mission of the Department of Education (ED) is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access for students of all ages.

Is federal budget breakdown?

Government spending is broken down into two primary categories: mandatory and discretionary. Mandatory spending represents nearly two-thirds of annual federal spending. This type of spending does not require an annual vote by Congress. The second major category is discretionary spending.

Which states receive the most federal funding for education?

Using this metric, Alaska had the highest rate of federal funding in 2021 at roughly $8,628 per person, a whole 26.5% more than the second-highest state, Rhode Island, which received $6,821. They're followed by New Mexico ($6,748), Wyoming ($6,718), and Delaware ($6,011).

Why is American education better than other countries?

That's because American schools are well known for providing high-quality education through a balanced, tried-and-tested curriculum. The US education system is informed by cutting-edge research, which helps develop students into critical thinkers with well-rounded social-emotional skills.

Do schools get paid per student?

K-12 schools nationwide receive $119.1 billion total or $2,400 per pupil from the federal government. States contribute a total of $383.9 billion to K-12 public education or $7,740 per student. Local governments contribute $375.2 billion total or $7,560 per student.

Where does the U.S. rank in education?

As of now, the United States education ranking is in the 13th place with a score of 0.883, trailing behind countries like Germany (2nd) and New Zealand (3rd). In the QS World University Rankings 2023, 11 out of the top 20 universities are American, including prestigious institutions like MIT, Stanford, and Harvard.

Who funds the U.S. Department of Education?

Each year federal agencies receive funding from Congress, known as budgetary resources . In FY 2024, the Department of Education (ED) had $241.66 Billion distributed among its 10 sub-components. Agencies spend available budgetary resources by making financial promises called obligations .

What does the federal government do for education?

The Department's elementary and secondary programs annually serve nearly 18,200 school districts and over 50 million students attending roughly 98,000 public schools and 32,000 private schools. Department programs also provide grant, loan, and work-study assistance to more than 12 million postsecondary students.

How does federal funding for education work?

Federal dollars supplement state resources by narrowing funding gaps for at-risk students through programs such as Title I grants under the Elementary and Secondary Education Act (ESEA) and Part B grants under the Individuals with Disabilities Education Act (IDEA).

How much do I have left on my GI Bill?

If you have a question about the months you have used, contact the VA at (888) GI-BILL-1 (442-4551) to speak with a Veterans Benefits Counselor. Ask about your remaining months of entitlement. A: You can transfer some or all of your 36 months of benefits to your immediate family members.

Does the federal government pay for education for employees?

If you are a full-time employee of the federal government, you may be eligible for reimbursement of your tuition and course material costs associated with your studies.