Education is primarily a State and local responsibility in the United States. It is States and communities, as well as public and private organizations of all kinds, that establish schools and colleges, develop curricula, and determine requirements for enrollment and graduation. The structure of education finance in America reflects this predominant State and local role. Of an estimated $1.15 trillion being spent nationwide on education at all levels for school year 2011-2012, a substantial majority will come from State, local, and private sources. This is especially true at the elementary and secondary level, where about 87.7 percent of the funds will come from non-Federal sources.
That means the Federal contribution to elementary and secondary education is about 10.8 percent, which includes funds not only from the Department of Education (ED) but also from other Federal agencies, such as the Department of Health and Human Services' Head Start program and the Department of Agriculture's School Lunch program.
Although ED's share of total education funding in the U.S. is relatively small, ED works hard to get a big bang for its taxpayer-provided bucks by targeting its funds where they can do the most good. This targeting reflects the historical development of the Federal role in education as a kind of "emergency response system, " a means of filling gaps in State and local support for education when critical national needs arise.
The original Department of Education was created in 1867 to collect information on schools and teaching that would help the States establish effective school systems. While the agency's name and location within the Executive Branch have changed over the past 130 years, this early emphasis on getting information on what works in education to teachers and education policymakers continues down to the present day.
The passage of the Second Morrill Act in 1890 gave the then-named Office of Education responsibility for administering support for the original system of land-grant colleges and universities. Vocational education became the next major area of Federal aid to schools, with the 1917 Smith-Hughes Act and the 1946 George-Barden Act focusing on agricultural, industrial, and home economics training for high school students.
World War II led to a significant expansion of Federal support for education. The Lanham Act in 1941 and the Impact Aid laws of 1950 eased the burden on communities affected by the presence of military and other Federal installations by making payments to school districts. And in 1944, the "GI Bill" authorized postsecondary education assistance that would ultimately send nearly 8 million World War II veterans to college.
Jen MacLean