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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 year with explicit national shares cited here—school year 2022–23—state revenue supplied 45.1%, local revenue 42.0%, and federal revenue 12.9%. Those are national figures, 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 National Center for Education Statistics (NCES) reported $981,793,393 thousand in total U.S. public elementary and secondary revenue for 2022–23, in current dollars. State funds were the largest source nationally, but state and local shares vary substantially among jurisdictions.
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NCES’s latest surfaced national report covers school year 2023–24 and fiscal year 2024, published in April 2026. Its available summary does not provide precise U.S. revenue-source percentages, so the comparable percentages below use the explicit 2022–23 figures in NCES Digest table 235.20.
| Revenue source | Share of national total, 2022–23 | What it represents |
|---|---|---|
| State | 45.1% | Revenue from state governments, distributed through state programs and systems. |
| Local | 42.0% | Local public revenue, including property taxes and other local sources. |
| Federal | 12.9% | Federal revenue, often tied to particular programs or student populations. |
Shares are from NCES Digest of Education Statistics 2025, table 235.20. They are nominal/current-dollar figures for 2022–23; small differences in totals can result from rounding.
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Where does school funding come from locally?
“Local revenue” is broader than property taxes. In 2022–23, property taxes made up 33.2% of national public-school revenue, other local public revenue accounted for 7.5%, and private revenue contributed 1.3%. These categories together help explain why the 42.0% local share should not be described as all coming from property taxes.
Property-tax systems, other local revenue sources, and the balance between local and state support differ by jurisdiction. There is no single nationwide tax base or voting mechanism that determines how local school revenue is raised.
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How is state aid distributed to school districts?
State revenue was the largest national funding source in the 2022–23 breakdown, but the national percentage does not reveal what a particular district receives. States use their own formulas and programs to distribute aid; the details vary, and national totals cannot substitute for a state’s current funding rules. NCES’s comparisons show substantial differences in the proportions contributed by each level of government across states.
When examining a state or district, distinguish money authorized or allocated under a formula from revenue that the district actually records. Appropriation dates, state awards, and district revenue reporting do not always line up in the same year.
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What does federal funding pay for in schools?
Federal aid is the smallest of the three broad sources nationally in the 2022–23 figures. It often supports defined purposes and eligible student groups rather than serving as unrestricted replacement funding for state and local revenue.
Title I, Part A
Title I, Part A is a major example of federal support for students from low-income families. The U.S. Department of Education allocates funds to state education agencies using statutory formulas. States then distribute funding to local education agencies (districts), subject to applicable rules and reserves. Districts direct funds toward schools with higher concentrations of low-income students; schools that meet the program’s poverty threshold may operate schoolwide programs. See the U.S. Department of Education’s Title I, Part A overview and NCES’s Title I fact page.
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This flow matters: a federal allocation to a state is not necessarily the amount a district receives or records, and district funding is not automatically divided equally among every school.
How can you compare funding across states or districts?
Use the same school or fiscal year and the same revenue definitions. NCES’s Public School District Finance Peer Search lets readers examine district revenue-source percentages. For a meaningful comparison, check:
- Federal, state, and local shares of revenue.
- Revenue per pupil, using the same year and clearly identifying current or inflation-adjusted dollars.
- The local property-tax share alongside other local revenue.
- District context and student needs, rather than treating unlike districts as interchangeable.
- Whether a figure is an appropriation, award, formula allocation, or revenue actually recorded by the district.
NCES also reported an older, inflation-adjusted comparison for 2020–21: $954 billion in constant 2022–23 dollars, with 11% federal, 46% state, and 44% local. These figures are from a different year and use constant dollars, so they should not be combined with the current-dollar 2022–23 shares above. The indicator also documents variation among states: NCES Public School Revenue Sources.
What the national figures do—and do not—show
The figures describe U.S. public elementary and secondary education as a whole. They do not establish the revenue mix for private schools, higher education, an individual school, or every district. NCES notes timing differences between appropriations and local education agency revenue reporting; series and definitions should be checked before comparing years. Its historical data and notes are available in NCES Digest table 235.20.
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