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.
The Cold War stimulated the first example of comprehensive Federal education legislation, when in 1958 Congress passed the National Defense Education Act (NDEA) in response to the Soviet launch of Sputnik. To help ensure that highly trained individuals would be available to help America compete with the Soviet Union in scientific and technical fields, the NDEA included support for loans to college students, the improvement of science, mathematics, and foreign language instruction in elementary and secondary schools, graduate fellowships, foreign language and area studies, and vocational-technical training.
The anti-poverty and civil rights laws of the 1960s and 1970s brought about a dramatic emergence of the Department's equal access mission. The passage of laws such as Title VI of the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, and Section 504 of the Rehabilitation Act of 1973 which prohibited discrimination based on race, sex, and disability, respectively made civil rights enforcement a fundamental and long-lasting focus of the Department of Education. In 1965, the Elementary and Secondary Education Act launched a comprehensive set of programs, including the Title I program of Federal aid to disadvantaged children to address the problems of poor urban and rural areas. And in that same year, the Higher Education Act authorized assistance for postsecondary education, including financial aid programs for needy college students.
In 1980, Congress established the Department of Education as a Cabinet level agency. Today, ED operates programs that touch on every area and level of education. The Department's elementary and secondary programs annually serve nearly 14,000 school districts and some 56 million students attending roughly 99,000 public schools and 34,000 private schools. Department programs also provide grant, loan, and work-study assistance to more than 15 million postsecondary students.
Despite the growth of the Federal role in education, the Department never strayed far from what would become its official mission: to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access.
The Department carries out its mission in two major ways. First, the Secretary and the Department play a leadership role in the ongoing national dialogue over how to improve the results of our education system for all students. This involves such activities as raising national and community awareness of the education challenges confronting the Nation, disseminating the latest discoveries on what works in teaching and learning, and helping communities work out solutions to difficult educational issues.
Second, the Department pursues its twin goals of access and excellence through the administration of programs that cover every area of education and range from preschool education through postdoctoral research. For more information on the Department's programs see the President's FY 2013 Budget Request for Education.
One final note: while ED's programs and responsibilities have grown substantially over the years, the Department itself has not. In fact, the Department has the smallest staff of the 15 Cabinet agencies, even though its discretionary budget alone is the third largest, behind only the Department of Defense and the Department of Health and Human Services. In addition, the Department makes over $120 billion in new loans annually. A wide range of management improvements have helped limit administrative costs to approximately 2 percent of the Department's discretionary budget and only about 1 percent of all grants and loans made by the Department. This means that ED delivers about 99 cents on the dollar in education assistance to States, school districts, postsecondary institutions, and students.