US Education Spending by Level Since 1900

Education spending has steadily grown to about 6 percent GDP.

Education spending in 1900 was about one percent of GDP, mostly in primary and secondary schooling. Spending grew briskly through the mid 1920s and then increased to about 2.2 percent GDP just before World War II.

After a sharp reduction in spending during World War II education spending increased briskly, hitting 5.5 percent GDP in the 1970s. This period saw a remarkable increase in tertiary -- university -- education growing from 0.4 percent GDP in 1950 to 1.4 percent GDP in 1971.

Starting in the mid 1970s primary and secondary education entered a mild decline, from 3.8 percent GDP in 1975 down to 3.2 percent GDP in 1984. Meanwhile university spending was essentially flat at about 1.4 percent GDP.

In the 25 years from 1985 to 2010 primary and secondary education increased to about 4 percent GDP while university education spending increased to about 1.7 percent GDP.

After the Great Recession of 2008-10 education resumed as a lower level, with primary and secondary education at about 3.6 percent GDP and university education at 1.7 percent GDP. Universities received a big bonus during the COVID crisis.

US Education Spending Since 1900 by Government Level

Education spending patterns differ: at federal, state, and local levels.

At the beginning of the 20th century education spending at one percent of GDP was almost entirely a local government affair. But by 1930 with local education spending at 2.2 percent GDP state education spending had increased to 0.26 percent GDP. By the middle of the 1930s state and federal education spending had increased to 0.35 percent GDP for state and 0.4 percent GDP for federal.

After World War II federal education spending increased sharply to one percent GDP due to the GI Bill for WWII veterans.

In the 1950s federal education spending subsided to 0.3 percent GDP while state education surged from 0.4 to 0.8 percent GDP. Meanwhile, local education spending almosst doubled from 1.9 percent GDP in 1950 to 3.0 percent GDP in 1965.

Education spending showed a big surge starting in the mid-1960s. Federal education spending went from 0.3 to 1.2 percent GDP in 1979; state education spending went from 0.8 to 1.2 percent GDP in 1980. Local education spending increased modestly from 3.0 to 3.5 percent GDP in 1980.

In the 1980s federal education spending declined from 1.2 to 0.7 percent GDP, while state and location education spending stayed about the same.

Since in th 1990s federal education spending has stayed at about 0.6 to 0.7 percent GDP, while state education spending has increased modestly from 1.3 percent GDP to 1.6 percent GDP. Local education spending has stayed at around 3.7 percent GDP with a temporary rise to 4.0 percent GDP in the 2000s.

Federal education spending experienced a bump during and after the COVID crisis.