The High Cost of Federal Education Dollars
What Your State Sacrifices for 7–10% of Its School Budget
Hi friends,
There’s a lot of hullaballoo about the Department of Education. Good and bad. Pro and con. I’ve seen some valid points ‘for’ and maybe, in my opinion, more points that seem valid on the ‘con’ side. Because I’m in favor of smaller government control, the ‘strings’ are my biggest concern.
There’s plenty of data on the actual financial aspects. As with many governmental functions, it’s not the most efficient. We know that the federal government hasn’t been able to stay in its budget since 2001. Tax dollars - yours and mine - don’t grow on trees. Truly, one is much more careful when spending his own money than when one is spending someone else’s money.
The results have certainly not been positive. As we see just about every day, reading and math levels are far too poor.
Consider the below in addition to your other thoughts on federal control of schools.
1. The Basics: Federal Funding by the Numbers
- $82 Billion – U.S. Department of Education budget (FY2024)
- 7–10% – Portion of total K–12 spending that comes from the feds
- 92% – DOE budget that flows to states in grants (Title I, IDEA, etc.)
- An estimated 30–40¢ of every federal education dollar is lost to compliance and bureaucracy, based on Heritage Foundation and historical Cato analyses. (Sources below.)
2. The Strings Attached
Federal money isn’t free - here’s what states must often do to get or keep it:
- Adopt federal curriculum “guidance” (e.g., Common Core, equity frameworks)
- Implement federally mandated data tracking & testing
- Hire based on DEI principles or lose grants
- Report to DC, not to parents or local school boards
Result: Washington sets the agenda—even in your local classroom.
3. The Hidden Costs
States lose more than money:
- Unfunded mandates drive up local expenses
- Administrative bloat increases staffing costs
- Loss of local control over what’s taught - and how
“Federal education dollars come with fine print. And it’s not written by parents.”
4. What Could States Do Instead?
States may not need to replace the 7%-10% once the administrative and bureaucratic ‘strings’ are cut. If your state stopped accepting DOE funds, and it needed to replace them, here are some alternatives
- Local Reinvestment: Replace lost funds with local/state revenues
- Education Savings Accounts (ESAs): Direct funds to families
- School Choice Expansion: Charter, private, and homeschool support
- Tailored Curriculum: States decide, not federal agencies
Examples:
- Florida, Texas, Utah: Exploring/enacting school choice, reduced federal dependency
- Oklahoma (2023): Proposed returning federal funds for full local control
5. Visual Snapshot (What Happens to Each Federal Dollar Sent to a State)
| Federal Education Dollar | What Happens |
| $1 Sent from DC | -20¢ in admin costs |
| 60¢ Reaches District | -10¢ in mandate costs |
| 50¢ Left | Tied to federal priorities |
This shows how federal funds are eroded by red tape. Meanwhile, these dollars make up only 7–10% of your state’s total school funding.
6. Takeaway
Federal education funding is a Trojan Horse.
It looks like help—but comes with control.
Reclaim your school. Reclaim your state. Reclaim your future.
Learn More & Compare States
- Heritage Foundation Report Card: https://www.heritage.org/educationreportcard
- Cato's Guide to Downsizing Government: https://www.downsizinggovernment.org/education
- DOE State Funding Tables: https://www2.ed.gov/about/overview/budget/statetables/index.html
Sources: U.S. Dept. of Ed, Heritage Foundation, Heritage Foundation’s Education Freedom Report Cards, Cato Institute’s Downsizing the Federal Government: Education Section, DOE Budget Docs and State Allocations
As always, do your own research; make up your own mind.
References to other sources do not necessarily reflect my opinions, and I make no claim to their veracity or completeness. I provide them for your consideration.
(AI may have been used in this article.)
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Until next time…
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