How much does the United States spend on education—and why should it matter to education solution providers?
Spending levels directly influence purchasing decisions, making it critical for providers to offer solutions that not only improve efficiency and learning outcomes but also stretch limited resources. Understanding education funding trends is essential to aligning your offerings with the real-world budget realities of schools and districts.
We’re breaking down how much the U.S. allocates to public education, what it means for K-12 and higher education budgets, and how providers can position themselves for success in today’s school funding landscape.
Here’s a closer look at what the government provides, and what this means for schools and the people working to support them:
According to Education Data Initiative, public education funding supports a vast student population—49.6 million K-12 students and 13.5 million college students across the U.S. However, the country allocates only 12.7% of its federal funding to education, falling short of the 15% benchmark set by international organizations like UNESCO. Additionally, total spending often comes in slightly below the total public funding, which is typical due to how budgets are allocated over time.
On top of that, temporary federal investments like ESSER funds, which helped schools during the pandemic, are winding down. This leaves many schools facing potential budget gaps where previous funds had been supporting ongoing programs.
Across the U.S., public K-12 education spending adds up to a staggering $857.2 billion. Of that, schools receive $119.1 billion—or about $2,400 per student—from the federal government. States pitch in the largest share, contributing $383.9 billion, where K-12 public schools spend $17,277 per student on average.
That leaves a funding gap of about $21.0 billion, or $423 per student, between what’s spent and what’s officially funded.
When it comes to secondary education, public colleges and universities spend an average of $30,227 per student—with about 27.1% of that going directly toward instruction. Federal spending support for these institutions averages $2,648 per student, which is a 15.5% increase from the previous year. Meanwhile, state and local governments provide a combined average of $8,370 per student to help cover costs.
Understanding where funds come from, how they’re allocated, and the priorities they reflect can guide product development and marketing strategies. Whether targeting high-investment states or helping lower-funded districts stretch limited school system finances, providers who ground their strategies in education spending data are better positioned to meet the moment—and the market.
On average, U.S. schools spend about $20,387 per student—ranking third among the 40 developed countries in the OECD. Despite this high per-student government spending, the U.S. still falls short of the global benchmark for overall public investment in education. And several systemic issues stand in the way of making that spending truly effective, including:
Economic Policy Institute notes that school funding in the U.S. has always been a bit uneven. Most of it comes from state and local sources, especially property taxes, which can lead to differences in how much money schools receive. The federal government chips in, but it’s a relatively small slice of the pie. That means schools in lower-income areas often end up with less funding per student than those in wealthier communities, even though their needs may be greater.
Many education policies are still evolving under the new administration, which has introduced efforts to dismantle the Department of Education. And as Education Week reports, the latest federal budget resolution doesn’t spell out funding for specific education programs. Instead, it lumps them into broader categories, giving the administration more wiggle room in how funds are used.
Meanwhile, Congress has yet to finalize the full budget for fiscal year 2025 and is relying on temporary measures to keep services running. This stopgap approach means some programs—especially those not mentioned by name—could face cuts or be dropped altogether in future budget talks.
Want to learn more? Take a closer look at policy changes in our blog: Adapting to HEA Policy Shifts Under the New Administration.
Given the current funding landscape, economic pressures will also continue to shape what’s possible. When federal budgets tighten, education is often among the first areas to feel the squeeze. That’s why understanding the state of education funding is essential—not just for schools and educators, but also for the solution providers that support them.
By staying updated on spending trends and global best practices, providers can anticipate changes, adjust their strategies, and deliver real value—regardless of the budget outlook. Here are ways school vendors can engage decision-makers despite tightening school system finances:
Consider these common questions to help you better navigate education spending and stay ahead of new opportunities:
Per-pupil spending varies widely across states due to differences in state and local funding models. For instance, Vermont leads the nation in K-12 spending per student, with Hawaii close behind. In contrast, Texas allocates the least state funding per pupil for K-12 education.
Schools in wealthier communities generally have more resources at their disposal, whereas those in low-income areas often face funding shortfalls. This contributes to significant disparities in educational access and quality.
Increased spending can support student achievement, but it’s not a guarantee. How resources are used matters more than just the amount spent. Effective use of funds, quality education, and targeted programs tend to make the greatest impact.
Focus on offering affordable, high-impact solutions that cater to schools’ evolving needs. Stay up to date on federal and state budgets, and highlight how your offerings help schools maximize their limited resources to enhance student outcomes. Education data from trusted partners like Agile Education Marketing can be a valuable tool in this effort.
To spot states investing in educational technology, keep an eye on state budgets, tech grants, and policy updates. Following announcements and looking out for state-level reports on EdTech funding will help you track where tech investments are most likely to grow.
Stay in the loop by following government announcements, subscribing to education policy newsletters, and participating in educational associations. Attending industry conferences, networking with local education leaders, and keeping up with legislative developments will also provide valuable insights into future funding opportunities.
By understanding how education spending is distributed across the U.S., you can better tailor your products and services to meet schools’ specific needs. This is essential for stronger engagement with educational decision-makers.
Agile Education Marketing can help you align your offerings with these trends and create effective omnichannel marketing strategies that reach the right audience. By staying proactive and adaptable, you’ll make a meaningful impact and support schools in achieving goals, no matter their budget.
Ready to align your education solutions with the latest funding trends? Explore our K-12 Data Licenses, or reach out today to connect!
Ali, VP of Marketing at Agile Education Marketing, is a strategy development specialist with over 20 years of experience in the education market. Prior to joining Agile, she held leadership roles at Pearson, McGraw-Hill, and InsideTrack and earned her Master of Business Administration from the University of Colorado.
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