How Much Does the US Spend on Education?

The United States spends more on education than any other country in the world. In fact, according to the Organization for Economic Cooperation and Development, the US spends about 7.3% of its GDP on education. That’s more than double the amount spent by most developed countries.

So, how much does the US actually spend on education? Well, it depends on how you look at it. On a per-student basis, the US spends more than any other country in the world

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How much is spent on education in the US?

The United States spends more on education than any other country in the world. In 2013, the US spent an estimated $620 billion on education, which is more than 4% of the country’s GDP. This is more than any other country in the world, according to data from the Organization for Economic Cooperation and Development (OECD).

However, when you compare how much is spent per student, the US falls to ninth place. The OECD data shows that the US spends $12,800 per student, which is less than countries like Switzerland ($28,973), Luxembourg ($24,162), and Norway ($19,817).

There are many reasons why the US spends so much on education. One reason is that there are a lot of children in the US. There are about 50 million students in elementary and secondary schools in the US. That’s a lot of students to educate!

Another reason why the US spends so much on education is because we have a lot of colleges and universities. There are more than 4,000 colleges and universities in the US. That’s a lot of schools to maintain!

Finally, another reason why education costs so much in the US is because we have higher standards for our schools. We expect our schools to provide a quality education for all students, regardless of their background or economic status. This means that our schools need to be well-equipped with resources and qualified teachers.

How does this compare to other countries?

The United States spends more on education than any other country in the world. In 2015, expenditure on education made up 4.4% of the US GDP, totalling $598 billion. This is more than double the amount spent by France and Germany, and around $200 billion more than China.

So why does the US spend so much on education? There are a number of reasons. Firstly, the US has a large population. It is estimated that there are around 50 million students enrolled in primary and secondary schools across the country. This number is only increasing as the population continues to grow.

Secondly, the US economy is much larger than most other countries. This means that there is more money available to be spent on things like education. The US also has a higher level of income inequality than many other developed countries. This means that there are more people living in poverty who need access to free or subsidised education.

Finally, the US government places a high importance on education. They believe that it is essential for economic growth and social mobility. They have therefore invested heavily in education over the years, and this spending is only likely to increase in the future.

How has spending changed over time?

In the past 50 years, total spending on public elementary and secondary schools in the United States has more than doubled, after adjusting for inflation.1 In 2013–14, per-pupil spending was about $10,700 in constant 2014–15 dollars.2 This is an increase of 112% over 1970–71 per-pupil spending of slightly more than $5,000 (in constant 2014–15 dollars).3

During this period, the number of students enrolled in public elementary and secondary schools also increased—from about 44 million in 1970 to just over 50 million in 1993.4 After 1993, though, total student enrollment began to decline slightly, reaching 49 million by 2013.5 As a result of both rising per-pupil spending and falling enrollments, total public elementary and secondary education spending climbed from $236 billion (in constant 2014–15 dollars) in 1970–71 to $621 billion by 2013–14.6

Categories of Education Spending
Total public elementary and secondary education spending can be divided into four categories:
-instructional spending
-support services
-capital outlays
-other expenditures.

Between 1970 and 1971, instructional spending made up approximately 58% of all public elementary and secondary education expenditures.7 By 2013–14, it accounted for 65%.8 Expenditures on support services—which include items such as school administrators’ salaries; professional development; operations and maintenance; student transportation; food service; and library books—climbed from 18% of total expenditures in 1970–71 to 26% by 2001–02.9 These costs then declined somewhat as a share of total expenditures, reaching 24% by 2013–14.10 During the same period, capital outlays—which include school construction and renovation costs; land acquisition; equipment purchases; and technology investments—dropped from 12% to 8% of total expenditures.11 Finally, other expenditures include interest on debt incurred for school construction projects as well as expenses related to community services provided by some schools (such as adult education classes).12 These other expenses made up 6% of public elementary and secondary education expenditures in 1970–71 but just 3% by 2013–14.13

How does spending vary by state?

Spending on education varies widely by state, with some states spending significantly more per student than others. In 2013, for example, Vermont spent more than $17,000 per student, while Utah spent less than $6,000.

There are a number of factors that contribute to this variation, including the cost of living in a given state and the number of students enrolled in the state’s public schools. However, some experts believe that states with higher per-student spending tend to produce better educational outcomes for their students.

How does spending vary by school district?

School districts in the US vary greatly in terms of how much money they spend on each student.

On average, districts in the US spend about $12,000 per student. However, there is a huge range from the district that spends the least (about $4,000 per student) to the district that spends the most (about $20,000 per student).

There are many factors that can affect how much a school district spends on each student. Some of these factors include:
– The size of the district
– The number of students in the district
– The average income of people in the district
– The cost of living in the district
– The amount of money that the state and federal government give to the district

How does spending vary by type of school?

In 2017, spending on elementary and secondary education in the United States totaled $790 billion, or about $12,201 per student enrolled1. This represented a modest increase from 2016, when spending was $780 billion, or about $12,011 per student.2

Spending varies widely by type of school. In 2017, for example, public charter schools spent an average of $9,137 per student, while magnet schools spent $12,067 per student.3 Private schools spent an average of $14,104 per student.4

At the state level, spending also varies widely. In 2017, for example, Alaska spent an average of $22,387 per student while Utah spent just $6,545 per student.5

There are a number of factors that contribute to these variations in spending. Some states have higher costs of living than others, which can make hiring teachers and building schools more expensive. States also have different tax structures, which can affect how much revenue they have to spend on education. Additionally, some states have more students enrolled in private schools than others.

How does spending vary by student population?

In 2015, public elementary and secondary schools in the United States spent an average of $11,392 per student1 (in constant 2016–17 dollars).2 This is equivalent to about 4 percent of the nation’s gross domestic product (GDP) or about $730 billion in total.3

How does spending vary by student population?
On average, public schools spent about 16 percent more per student in 2015–16 than they did in 2000–01.4 However, there were variations among states and student subgroups. For example:
– Between 2000–01 and 2015–16, per-pupil spending rose by 20 percent or more in nine states (Arizona, Colorado, Hawaii, Illinois, Maryland, Nevada, New Mexico, Vermont, and Wyoming). Mississippi had the smallest increase (1 percent).
– In 2015–16, high school students received about $129 more in per-pupil funding than elementary students. This was due largely to higher spending on secondary instruction and support services.5
– Students who were economically disadvantaged—that is, those eligible for free or reduced lunch—received an average of $1,071 less per year in state and local funding than their non-economically disadvantaged peers ($9,890 compared with $10,961).6 Per-pupil spending also varied by race/ethnicity: White students received an average of $1208 less than Asian/Pacific Islander students; Hispanic students received an average of $560 less; while Black students actually received an average of $722 more than White students.”

How does spending vary by type of expense?

In the United States, most educational expenditure falls into three broad categories: instructional spending, support services spending, and capital outlay.

Instructional spending includes expenditures on teachers and other instructional staff, as well as spending on instructional materials and supplies. Support services spending includes expenditures on school administration, student support services, and operations and maintenance. Capital outlay includes expenditure on construction and major repairs, land and buildings, and equipment.

In 2017–18, instructional spending made up the largest share of total educational expenditure in the United States (54%), followed by support services (23%) and capital outlay (9%).

How does spending vary by type of expense?
In 2017–18, the United States spent a total of $664 billion on elementary and secondary education. Of this total, 54% was spent on instructional expenses, 23% was spent on support services, and 9% was spent on capital outlay. The remaining 14% went to other expenses such as transportation and food services.

Instructional expenses include expenditures on teachers and other instruction staff, as well as instructional materials and supplies. In 2017–18, the United States spent $358 billion on instructional expenses at the elementary and secondary level. This amounted to $10,672 per student enrolled in public elementary and secondary schools.

Support services expenses include expenditures on school administration, student support services, operation and maintenance of facilities, and other school-related expenses. In 2017–18, the United States spent $153 billion on support services at the elementary and secondary level. This amounted to $4388 per student enrolled in public elementary schools.

How does spending vary by source of funding?

In the United States, spending on public elementary and secondary schools comes from three sources: the federal government, state and local governments, and private sources. In school year 2015–16, these three sources contributed about the following shares of total public elementary and secondary education revenues:

Federal government: 10 percent
State governments: 46 percent
Local governments: 44 percent
Private sources: less than 1 percent

How does spending vary by source of funding?
Total spending for public elementary and secondary schools in the United States was $634 billion in school year 2015–16.1 State and local governments contributed 87 percent of the funds, while the federal government contributed about 13 percent. Within state budgets, 48 percent of funding came from state sources and 43 percent came from local sources.2

1 National Center for Education Statistics (NCES), “Digest of Education Statistics,” table 205.20. Available online at https://nces.ed.gov/programs/digest/d17/tables/dt17_205.20.asp?current=yes (viewed March 27, 2018).
2 NCES, “Revenues and Expenditures for Public Elementary and Secondary School Systems,” table 12. Available online at https://nces.ed.gov/programs/digest/d16/tables/dt16_212.60.asp (viewed March 27, 2018).

What are the implications of high spending on education?

There are a number of implications of high spending on education. First, it suggests that the United States values education highly. This is evident in the fact that the US spends more on education than any other country in the world. Second, high spending on education can lead to improved educational outcomes. This is especially true when the money is spent wisely, on things like teachers’ salaries and quality educational materials. Finally, high spending on education can help to level the playing field between rich and poor students, giving all children an equal chance at success in life.