U S Investment In Public Education Is At Risk

Leo Migdal

-Dec 3, 2025, 10:48 AM

u s investment in public education is at risk

By Hilary Wething and Josh Bivens • August 21, 2025 State cutbacks to K–12 spending, the rise of voucher programs, and Trump’s attacks on the federal Department of Education threaten to rob U.S. children of an adequate education. K–12 public education spending levels are a policy choice. Policymakers should take urgent steps to fully fund public education. Check your inbox or spam folder to confirm your subscription.

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For much of the 20th century, the United States set the global standard for higher education, driving economic expansion, technological innovation and middle-class stability. A college degree was a reliable pathway to prosperity. Today, that reality is slipping away. The U.S. now ranks 20th globally in post-high school attainment among 25- to 34-year-olds, according to OECD’s Education at a Glance 2024 report, the latest look at educational achievement around the world. That means proportionally fewer Americans in this age group earn associate degrees, bachelor’s degrees, or other credentials than their international peers.

Meanwhile, countries such as South Korea (69.3% attainment), Canada (66.9%) and Japan (65.5%) have surged ahead by prioritizing education and workforce development through sustained public investment, affordability initiatives and alignment with labor market needs. In contrast, with an attainment rate of just under 55%, the U.S. has seen investment in higher education stagnate, leading to rising tuition costs and declining confidence in the value of a degree. Recent layoffs at the Department of Education, cuts to state university budgets and even some college closures have only deepened the crisis, leaving fewer resources for student services, academic programs and the educators who... Instead of strengthening the system that once made America an economic powerhouse, the country is retreating, and the consequences are dire. Recent moves on both sides of the aisle show that lawmakers may not be in favor of the Trump administration’s agenda to reduce federal spending on public education.

On July 31st, the bipartisan Senate Appropriations Committee voted 26-3 in favor of a bill that rejects most of Trump’s recommended $4.5 billion cuts to K-12 education and, in fact, increases funding to Title... Yet, with the budget not due to go into effect until October 1st (and the full Senate and House still needing to weigh in) there’s ample opportunity for federal cuts to go back on... And while the overall amount of money may not seem like a lot compared to total education funding, reductions, impoundments, and rescissions in federal education funding disproportionately impact some states, some schools, and some... Receive ERS’ latest research, analyses, district stories, and interactive tools. As we look ahead to two more months of discussion and debate, we analyzed three significant factors that affect how keenly each state experiences disruptions or reductions in federal funding: The future of public education funding in the United States stands at a critical crossroads as federal budget cuts and shifting political priorities threaten the stability of resources vital for all public schools.

In 2025, these challenges undermine equity and quality in education, particularly impacting marginalized groups and low-income students. Advocacy groups such as Education Reform Now and Public School Strong are sounding alarms on the urgent need to protect public funds dedicated to education. The current atmosphere demands concerted efforts from policymakers, educators, and communities to ensure that every child’s right to a quality public education is upheld without compromise. Despite most public school funding coming from state and local sources, federal contributions have served as a crucial support to bridge equity gaps and maintain programs critical for vulnerable populations. However, in recent years, federal funding has been destabilized by policy shifts such as budget reconciliation measures aiming to slash billions from education budgets. These reductions have a disproportionate impact on:

This erosion of resources threatens the progress made in closing achievement gaps and stifles critical pathways to success for millions of students, as highlighted in reports from FutureED and The Education Trust. States like California and New York have vocally opposed such cutbacks, warning of compounded inequities unless federal support is restored. Meanwhile, advocacy efforts by organizations like Save Our Schools champion the call to prioritize public education at all government levels. The reduction in federal funding has cascading effects on school operations and educational quality: For example, migrant workers’ children often experience setbacks when state budgets fail to compensate for federal cuts, exacerbating existing disparities (Migrant Workers’ Education Setbacks). Efforts from initiatives such as EdBuild highlight the crucial necessity for transparent allocation of funds and equitable distribution across districts to mitigate these risks.

Last updated 19 hours ago ago. Our resources are updated regularly but please keep in mind that links, programs, policies, and contact information do change. Every year, American taxpayers spend over $800 billion on public K-12 education. Where that money comes from, how it’s distributed, and whether it actually helps kids learn better has sparked some of the fiercest political battles in the country. The fights about fundamental questions: Should rich neighborhoods get better schools than poor ones? Can parents use tax money to send their kids to private schools?

Does spending more actually make schools better? These debates shape the education of 50 million American children. They determine whether a kid in rural Mississippi gets the same opportunities as one in suburban Connecticut. And they reflect deep disagreements about the role of government, the meaning of equality, and what America owes its children. America’s school funding mess started in 1647. That year, Massachusetts passed a law requiring towns to establish schools and pay for them with local property taxes.

The colonists chose property taxes because land was the most reliable measure of wealth at the time. Sari Factor is Chief Strategy Officer at Imagine Learning, one of the largest digital curriculum providers in the U.S. Since leaving the classroom over 40 years ago, around the same time as “A Nation at Risk” was published, I have remained deeply embedded in education, working to develop tools to support educators in... The attack on federal funding for education research and the latest NAEP scores, also known as “The Nation’s Report Card,” are dispiriting—especially the widening disparity between high-performing and low-performing learners. The downward trend in proficiency, which preceded the pandemic, is a harbinger of the decline of America’s global competitiveness and economic power in the decades ahead. Knowing that educational outcomes are inextricably linked to our economy, governors and education leaders are grappling with this consistent decline in the face of a K-12 labor shortage, technological change and the aftereffects of...

As a country, it’s important to revisit the first principles of learning and schooling: • Kids need to attend school. Teaching and learning are social endeavors. Schooling plays an important part in helping prepare learners for successful participation in civil life, and interaction with peers reinforces the academic skills and concepts being taught. Chronic absenteeism is damaging both to the individual student who misses school and their entire class because, when they return, the teacher must work to catch them up while keeping the rest of the... Unless you are homeschooling or your child is truly ill, it’s important that kids attend school.

This decade could go down as one of the most consequential in the history of U.S. public education. Between COVID-19 school closures, historic declines in public school enrollment, and the rise in school choice policies, the decisions made by state lawmakers in the coming years will help shape generations to come. Policymakers must have the best data possible to inform their public education decisions. The following analysis from Reason Foundation’s K-12 Education Spending Spotlight brings together the latest figures from the U.S. Census Bureau and National Center for Education Statistics and highlights five key insights from our tool and their implications for state policymakers and other stakeholders.

These critical insights include examining and ranking every state’s total K-12 and per student public school funding, the public school enrollment levels in every state and how states continue to hire more non-teaching staff... Nationwide, public school funding increased by 35.8% between 2002 and 2023, rising from $14,969 per student to $20,322 per student after adjusting for inflation, Reason Foundation’s K-12 Education Spending Spotlight finds. In total, U.S. public schools received $946.5 billion in funding in 2023, with New York topping all states at $36,976 per student, followed by New Jersey at $30,267 per student.

U S Investment In Public Education Is At Risk

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