Department of Education Funding: Key Concepts and FAQ

Summary

Like most federal agencies, the Department of Education (ED) receives funds in support of its mission through various federal budget and appropriations processes. However, the processes by which ED receives and expends funds can be complicated. For example, ED receives both mandatory and discretionary appropriations, expends funds through formula and competitive grants, forward funds some accounts while providing appropriations at the start of the fiscal year to others, and subsidizes student loan costs (direct loans and loan guarantees).

As such, analyzing ED’s budget requires an understanding of a broad range of federal budget and appropriations concepts. This report provides an introduction to these concepts as they are used specifically in the context of the congressional appropriations process for ED.

Accordingly, the first section of this report provides an introduction to key terms and concepts in the federal budget and appropriations process for ED. It includes definitions and explanations of terms ranging from budget authority to transfers.

The second section answers frequently asked questions (FAQs) about federal funding for ED or education in general. These are as follows:

How much funding does the Department of Education receive annually?

How much does the federal government spend on education?

Where can I find information about the President’s budget request and congressional appropriations for the Department of Education?

How much ED funding is in the congressional budget resolution?

What is the difference between the amounts in appropriations bills and report language?

What happens to education funding if annual appropriations are not enacted before the start of the federal fiscal year?

What happens if an ED program authorization “expires”?

The third section includes a brief description of, and links to, reports and documents that provide more information about budget and appropriations concepts.