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What is the spending on Education?

In FY 2025 total US government spending on education — federal, state, and local — was “guesstimated” to be $1,628 billion.

Education Spending Analysis

This page shows the current trends in education spending. There are also charts on education spending history. See here for a general history of education spending.

Recent Education Spending

Chart S.81t: Recent Education Spending

In the 2010s total education spending, federal, state, and local, amounted to about $1 trillion. But in the late 2010s education spending began to increase, particularly in the wake of the COVID crisis.

In 2022 education spending blipped by $370 billion when President Biden implemented a student loan forgiveness program that was subsequently zeroed out by the courts.

In 2025 education spending was $1,628 billion.

Chart S.82t: Recent Education Spending
as Pct GDP

Viewed from a GDP perspective, overall education spending was pretty steady at 6 percent of GDP during the early 2010s. There was a slight increase due to the COVID crisis and a sudden increase to 8 percent GDP when President Biden announced a student loan forgiveness program.

In 2025 education spending was 5.3 percent GDP.

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History:

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US Education Spending by Level Since 1900

Education spending has steadily grown to about 6 percent GDP.

Chart S.83t: Education Spending since 1900 by Level

Education spending in 1900 was about one percent of GDP, mostly in primary and secondary schooling. Spending grew briskly through the mid 1920s and then increased to about 2.2 percent GDP just before World War II.

After a sharp reduction in spending during World War II education spending increased briskly, hitting 5.5 percent GDP in the 1970s. This period saw a remarkable increase in tertiary -- university -- education growing from 0.4 percent GDP in 1950 to 1.4 percent GDP in 1971.

Starting in the mid 1970s primary and secondary education entered a mild decline, from 3.8 percent GDP in 1975 down to 3.2 percent GDP in 1984. Meanwhile university spending was essentially flat at about 1.4 percent GDP.

In the 25 years from 1985 to 2010 primary and secondary education increased to about 4 percent GDP while university education spending increased to about 1.7 percent GDP.

After the Great Recession of 2008-10 education resumed as a lower level, with primary and secondary education at about 3.6 percent GDP and university education at 1.7 percent GDP. Universities received a big bonus during the COVID crisis.

US Education Spending Since 1900 by Government Level

Education spending patterns differ: at federal, state, and local levels.

Chart S.84t: Education Spending by Gov. Level

At the beginning of the 20th century education spending at one percent of GDP was almost entirely a local government affair. But by 1930 with local education spending at 2.2 percent GDP state education spending had increased to 0.26 percent GDP. By the middle of the 1930s state and federal education spending had increased to 0.35 percent GDP for state and 0.4 percent GDP for federal.

After World War II federal education spending increased sharply to one percent GDP due to the GI Bill for WWII veterans.

In the 1950s federal education spending subsided to 0.3 percent GDP while state education surged from 0.4 to 0.8 percent GDP. Meanwhile, local education spending almosst doubled from 1.9 percent GDP in 1950 to 3.0 percent GDP in 1965.

Education spending showed a big surge starting in the mid-1960s. Federal education spending went from 0.3 to 1.2 percent GDP in 1979; state education spending went from 0.8 to 1.2 percent GDP in 1980. Local education spending increased modestly from 3.0 to 3.5 percent GDP in 1980.

In the 1980s federal education spending declined from 1.2 to 0.7 percent GDP, while state and location education spending stayed about the same.

Since in th 1990s federal education spending has stayed at about 0.6 to 0.7 percent GDP, while state education spending has increased modestly from 1.3 percent GDP to 1.6 percent GDP. Local education spending has stayed at around 3.7 percent GDP with a temporary rise to 4.0 percent GDP in the 2000s.

Federal education spending experienced a bump during and after the COVID crisis.

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Spending Data Sources

Spending data is from official government sources.

Federal spending data since 1962 comes from the president’s budget.
All other spending data comes from the US Census Bureau.

Gross Domestic Product data comes from US Bureau of Economic Analysis and measuringworth.com.

Detailed table of spending data sources here.
Medicare breakdown here; Medicaid breakdown here.

Federal spending data begins in 1792.

State and local spending data begins in 1820.

State and local spending data for individual states begins in 1957.

Spending 101 Courses

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usgovernmentspending.com.

Where you go to get facts about government.

Prepared by Christopher Chantrill.
email: chrischantrill@gmail.com

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