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.
- Annual funding to state and local governments supports special education programs to meet the needs of children with disabilities at no cost to parents. In 2023, it was nearly $15 billion.
- School improvement programs, which amount to nearly $6 billion each year, award grants to schools for initiatives to improve educational outcomes.
In addition to funding, the National Center for Education Statistics, a department within the ED, gathers and reports data on K-12 educational institutions so schools and researchers can better analyze enrollment, finances, and performance metrics between schools and districts.
What is the role of Department of Education funding in higher education?
The ED administers two programs to support college students: Pell Grants and the federal student loan program.
Pell Grants provide assistance to college students based on their family’s ability to pay. The maximum amount for a student in the 2024-25 school year is $7,395. In a typical year, Pell Grant funding totals around $30 billion.
The federal student loan program subsidizes students by offering more generous loan terms than they would receive in the private loan market, including income-driven repayment plans, scheduled debt forgiveness, lower interest rates, and deferred payments.
