Federal Education Funding

Federal education funding is a vital component of public education in the United States. This funding supports school students, particularly those who come from low-income families, have disabilities, or need special education. Understanding these funding sources, how they're doled out, and eligibility for funding sheds light on the financial basis of our school system.

Federal funding plays a key role in supporting education. These funds help support students from their first year in early childhood programs all the way through high school. They are allocated annually. Such funding sources are essential in providing resources, faculty, and infrastructure for a student's quality education.

Each state has its own breakdown of funds, based on such factors as how much federal funding it gets. State contributions can vary significantly. This article discusses federal education funding and federal revenues.

Federal Education Funding Sources

Federal funding for education primarily comes from four key federal sources: the U.S. Department of Education, the U.S. Department of Health and Human Services (HHS), the U.S. Department of Agriculture (USDA), and the U.S. Department of Defense (DOD). This funding supports a wide array of public education initiatives and interventions. These funds help to level out the playing field and aim to ensure universal access to a quality education.

The Department of Education is the primary federal agency dedicated to public education. It allocates funds through various programs, such as those targeted toward low-income students and learners with disabilities. For example, the Individuals with Disabilities Education Act (IDEA) provides federal aid for special education. Enrollment is the basis for funding eligibility. Funds are distributed based on the number of students with disabilities in each state.

A state that has more federal education programs for children may end up with a higher percentage of federal funds overall. That said, whenever one source cuts back, it has an effect on the other sources.

If, for example, the federal government cuts its educational contribution across the board by 2%, state and local funding must make up the shortfall. If either of those sources makes cutbacks, the remaining source feels more pressure to contribute more. If the necessary funding is not there, the result is either higher taxes or reduced services.

The Department of Health and Human Services contributes to education through its Head Start program. Head Start focuses on kids up to age 5. And the Department of Agriculture funds the National School Lunch Program for students who cannot afford to pay for their own meals. The NSLP helps students up through secondary school in public, charter, and certain private settings.

Even with these federal agencies' allocations, the U.S. government accounts for less than 10% of school revenues. The Department of Education has long described its role as "a kind of emergency response system" that fills gaps when state and local sources fall short on meeting key needs. For example, the 1944 GI Bill, a federal postsecondary program, helped fund college educations for nearly 8 million World War II veterans.

The Education Department's measures are not always merely stopgap. During and after World War II, Congress passed the Lanham Act (1941) and the Impact Aid (1950) laws to compensate school districts that housed military installations and other defense-related sites. Today, the federal government still pays communities with such institutions.

Moreover, Title I of the Elementary and Secondary Education Act (ESEA) of 1965 guarantees aid to disadvantaged children in poor urban and rural communities. The Title I program provides financial assistance to schools. The Higher Education Act (2008) provides financial aid programs to help qualifying students meet college expenses.

Federal Revenues

Federal money for public schools comes primarily from federal income taxes. These funds are allocated to various educational agencies and programs. The funding formula takes into account factors like state-level enrollment ratios and the percentage of low-income students.

Appropriations for federal funding are decided each fiscal year. Policymakers debate how much federal money should be spent on education and where it should go. It's important to remember that the federal role in education funding is in line with state funding and local property taxes.

In fact, most funding for public schools comes from the state government and local level. For example, in Texas, local property taxes make up a major part of the school funding. However, these can also lead to disparities. Wealthier areas with high property values can fund their schools more robustly than poorer areas.

Charter schools receive public funding but operate independently of the typical public school system. They might get less per pupil compared to traditional public schools, but they also have more freedom in how they use their funds.

The Impact of the Pandemic

The COVID-19 pandemic significantly affected public education. Federal aid became crucial in supporting school systems as they navigated unprecedented challenges. New federal sources were activated, providing emergency relief funds for K-12 schools.

Getting Legal Help

Federal education funding plays a crucial role in ensuring every student receives a quality education. Understanding the intricacies of school finance can be challenging. For those seeking to better understand these processes or those engaged in educational advocacy, legal aid societies and bar associations may provide resources and assistance.

Talk to an education lawyer for more information today.