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U.S. public elementary and secondary schools are funded through a mix of local, state, and federal revenue. In the latest NCES table with explicit national shares, for school year 2022–23, states provided 45.1% of revenue, local sources provided 42.0%, and the federal government provided 12.9%. Those national proportions are not a template for every state, district, or school.
How are public schools funded?
Public school revenue comes from three broad levels of government: local, state, and federal. The mix varies by state and district, and a national share does not tell you how a particular school is funded. Revenue reported for public elementary and secondary education also should not be applied to private schools or colleges.
NCES’s latest surfaced national report covers school year 2023–24 (fiscal year 2024), published in April 2026. Its available description confirms the period but does not provide explicit national source percentages. The latest NCES table with the detailed national breakdown cited here is for 2022–23.
Where does school funding come from?
NCES reported total public elementary and secondary revenue of $981,793,393 thousand for 2022–23. The source shares below are nominal, current-year figures from that table.
| Source | Share of national revenue, 2022–23 | What it includes or means |
|---|---|---|
| State | 45.1% | State revenue and aid; program and formula details vary by state. |
| Local | 42.0% | Property taxes and other local public revenue. |
| Federal | 12.9% | Federal revenue, often tied to particular programs or student populations. |
Source: NCES Digest of Education Statistics, table 235.20. The figures describe the national total, not what each district receives. Components may not sum exactly because of rounding.
How much do schools get from property taxes?
Property taxes are important, but they are not the whole local contribution. In the 2022–23 national breakdown, property taxes accounted for 33.2% of total revenue, other local public revenue for 7.5%, and private revenue for 1.3%.
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These categories distinguish property taxes from other local public sources; they do not mean every locality relies on the same tax base or uses the same voting and collection rules. State and local revenue proportions vary substantially across jurisdictions.
How is state aid distributed to school districts?
State revenue was the largest national source in the 2022–23 NCES breakdown, but there is no single nationwide state-aid formula. States use their own formulas and programs, and the details depend on state law and policy. A national comparison can show the broad source mix and interstate variation; it cannot explain the exact calculation for a particular district.
For context, an NCES indicator for 2020–21 reported inflation-adjusted national revenue of $954 billion in constant 2022–23 dollars, with 46% state, 44% local, and 11% federal. These are older constant-dollar figures, distinct from the 2022–23 current-dollar table above; the two sets should not be combined as if they were the same year or accounting presentation. See the NCES Public School Revenue Sources indicator.
What does federal funding pay for in schools?
Federal funding is the smallest of the three broad sources in the 2022–23 national totals. It commonly supports defined programs and populations rather than replacing general state and local support. Title I, Part A is a prominent example: it provides supplemental assistance for children from low-income families.
Title I funds do not necessarily travel directly from the federal government to an individual school. The U.S. Department of Education allocates funds to state education agencies using statutory formulas; states then distribute funds to local educational agencies (districts), subject to applicable rules and reserves. Districts target support toward schools with higher concentrations of students from low-income families. Schools that meet the program’s poverty threshold may operate schoolwide programs. See the U.S. Department of Education’s Title I, Part A program page and NCES Title I information.
How to check a district’s funding mix
- Open the NCES Public School District Finance Peer Search.
- Choose the district or comparison group and examine the federal, state, and local revenue shares.
- Align the school or fiscal year before comparing districts, and check that the revenue definitions match.
A source percentage describes the composition of revenue, not the amount available per student or whether the district’s funding meets student needs. For a fuller comparison, use the same year and dollar basis, distinguish property-tax revenue from other local revenue, and consider district context. Also note whether a figure represents an appropriation, a state award, or revenue actually recorded by a district: those events can occur at different times. NCES describes timing and series limitations in its historical revenue table and notes.
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