School Funding Equity

Across the country, the conversation about school funding equity is intensifying. In 2023, the U.S. spent approximately $947 billion on public K–12 education, with state and local governments contributing the majority. Federal dollars made up only about 13–14% of overall funding, and nearly 90% of that federal money was distributed through formula grants. Because most funding still depends on state formulas and local property taxes, many districts with weaker tax bases continue to struggle to keep pace with better-resourced communities. This year, several states have begun reviewing or revising their formulas to include “weighted student funding,” which provides more support for low-income students, English learners, and students receiving special education services. The movement toward weights that follow student needs reflects a growing national understanding: equity requires targeted investment, not equal distribution. As legislatures prepare their 2025 education budgets, funding fairness remains one of the most watched—and most consequential—policy issues in the nation.