GovernmentEducation

What does the Department of Education do?

Data updated January 23, 2025

The Department of Education is a cabinet-level executive branch agency responsible for overseeing education policy and administering funding for programs and individuals. The department's functions include supporting state and local education systems, promoting educational equity for all students, and providing grants and loans to higher education institutions and students. It was established in 1980 after the Department of Health, Education, and Welfare was reorganized into separate entities.

Other names and abbreviations for the Department of Education:

  • Education Department
  • ED
In FY 2024,

$268B

was spent by the Dept. of Education
In FY 2024,

4.0%

of federal spending was by the Dept. of Education
The Department of Education spent $268 billion in fiscal year (FY) 2024. This was 4.0% of the $6.8 trillion in overall federal spending. The department ranked sixth among federal agencies in total spending.

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

Federal spending may shift over time due to population growth, changes in policy and programs, and emerging problems to address. Since FY 1980, overall federal spending has risen 193.7%, while Department of Education spending has increased 371.6%.
The department’s spending grew more than overall spending, which means that the department’s share of the federal budget increased. In FY 2024, the Department of Education accounted for 4.0% of all federal spending, 1.5 percentage points higher than in FY 1980. In the last 10 years, that share has increased 1.7 points.
Major legislation, internal or global economic conditions, and acute events like the COVID-19 pandemic can affect spending year to year. For example, the federal budget fluctuated during the pandemic, rising from $5.3 trillion (in 2023 dollars) in 2019 to $7.7 trillion in 2020 and $7.8 trillion in 2021.

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

Most federal spending can be categorized as direct or indirect. Direct spending refers to money the federal government spends on budget items such as federal programs, employee salaries, and debt interest. Indirect spending refers to federal transfers to state and local governments.
In FY 2024, the Department of Education transferred 25.4% of its total spending to states and local governments.
The chart below outlines all ED spending.

How did the Department of Education spend its budget in 2024?

Federal government spending isolated to ED, FY 2024

Federal agencies often contain divisions including bureaus, offices, and subagencies. In FY 2024, the ED's divisions with the highest expenditures were the Office of Federal Student Aid, the Office of Elementary and Secondary Education, and the Office of Special Education and Rehabilitative Services.

The Department of Education’s highest-spending division is the Office of Federal Student Aid.

ED spending by division, FY 2024

Who leads the Department of Education?

ED is headed by the secretary of Education, who is nominated by the president, confirmed by the Senate, and then sworn into office. They are one of the 15 cabinet members who serve at the president's discretion. This appointed position typically ends when the appointee resigns, is replaced, or when a new president takes office and appoints their own cabinet. Some cabinet members serve temporarily during transitions between administrations.

Methodology

USAFacts standardizes data, in areas such as time and demographics, to make it easier to understand and compare.

Page sources

USAFacts endeavors to share the most up-to-date information available. We sourced the data on this page directly from government agencies; however, the intervals at which agencies publish updated data vary.

  • Office of Management and Budget and US Department of the Treasury

    Budget of the US Government and Monthly Treasury Statement

    Office of Management and Budget and US Department of the Treasury logo