Overview of the U.S. Department of Education’s Fiscal Year (FY) 2024 Spending
The U.S. Department of Education (ED) is a key cabinet-level agency that oversees education policy, administers federal funding for education programs, and strives to promote educational equity across the nation. Established in 1980 after the reorganization of the Department of Health, Education, and Welfare, the Department of Education has grown significantly in terms of both budget and scope.
In FY 2024, the Department of Education spent **$268 billion**, representing **4.0%** of the federal government’s total spending of **$6.8 trillion**. This makes the department the **sixth-largest** in terms of overall federal spending.
Key Data Points for FY 2024
The Department of Education accounted for 4.0% of all federal spending in FY 2024.
10 government agencies accounted for 97.0% of federal spending in FY 2024
Growth in Department of Education Spending
Over the past several decades, federal spending has risen substantially, with total spending increasing by **193.7%** since 1980. However, spending by the Department of Education has increased by a much larger margin — **371.6%** — highlighting the growing role of the department in federal spending.
Since FY 1980, the Department of Education’s share of the federal budget has increased by **1.5 percentage points**, from a smaller fraction to 4.0% in FY 2024. In the past decade alone, this share has risen by **1.7 percentage points**.
Federal Spending Categories :
Federal spending can generally be divided into **direct** and **indirect** categories:
– **Direct Spending**: Covers budget items like federal programs, employee salaries, and interest payments on debt.
– **Indirect Spending**: Refers to transfers made to state and local governments to fund various programs.
In FY 2024, the Department of Education allocated **25.4%** of its budget to transfer funds to state and local governments, assisting in various education-related initiatives at these levels.
### Department of Education’s Spending Breakdown by Division
The Department of Education is composed of several divisions, each with distinct spending priorities. In FY 2024, the largest expenditures were made by the following divisions:
The Department of Education’s share of federal spending in FY 2024 was higher than FY 1980.
Percentage of federal budget dedicated to ED, FYs 1980–2024
Source: Office of Management and Budget and US Department of the Treasury
Federal Student Aid Programs
The Office of Federal Student Aid is the largest spender within the Department of Education. It is responsible for funding and managing financial aid programs, including Pell Grants, which assist low-income students in accessing higher education.
Educational Equity and Research:
One of the department’s critical missions is to ensure educational equity. It achieves this by funding programs designed to help underserved students, including those with disabilities, and promoting school improvement nationwide.
Additionally, the Institute of Education Sciences (IES)** is the smallest division of the department but plays a crucial role in research. IES collects data on U.S. education systems through its sub-agency, the **National Center for Education Statistics (NCES)**, which is responsible for gathering and analyzing educational data.
Leadership:
The Department of Education is led by the Secretary of Education, a cabinet-level official who is nominated by the President, confirmed by the Senate, and serves at the President’s discretion. The Secretary’s term typically ends when a new administration takes office, or the appointee resigns or is replaced.
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Trends in Federal Spending (1980–2024)
The chart below highlights the trend of Department of Education spending as a share of overall federal spending from 1980 to 2024.
How the Department of Education’s Spending is Allocated
The Department of Education’s budget is used for a variety of purposes, with significant portions directed towards federal student aid, elementary and secondary education, and special education services
Federal Education Funding in Context
Federal funding accounts for a smaller portion of public school funding compared to state and local governments. In the 2021–2022 school year, about 13.7% of public school funding came from the federal government. However, this figure can vary significantly by district, with some districts receiving as much as 75% of their funding from federal sources.
Conclusion:
In conclusion, the U.S. Department of Education’s role in federal spending has significantly expanded since its creation. In FY 2024, the department’s share of federal spending reached **4.0%**, an increase from previous decades. While it remains one of the largest federal agencies, its primary focus on supporting state and local education systems, promoting equity, and funding higher education programs continues to shape its critical role in the nation’s educational landscape.
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This detailed breakdown provides a comprehensive look at the Department of Education’s fiscal priorities, spending distribution, and growth over time.
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