The Census Bureau's new report, 2004 Annual Survey of Local Government Finances – School Systems, shows that the $462.7 billion in combined federal and state funding received by the nation's elementary and secondary represented a 5.1 percent increase from 2003.
State governments contributed the largest share of public school funding at $218.1 billion. Local funding amounted to $203.3 billion, while the federal government's share of only $41.3 billion accounted for 8.9 percent of the total 2004 contribution for education.
Federal spending for public education is set by Congress through its consideration of the Elementary and Secondary Education Act. Traditionally, most funding for America's public schools has come from state and local government through the collection of property taxes.
Also See: Summary of the No Child Left Behind Act