Education in the United States is primarily the responsibility of states and localities. However, the federal government annually provides about 10 percent of the funding for K–12 schooling and helps students finance higher education through two major programs—one that makes loans to borrowers and one that provides grants to low-income students. Between 2000 and 2009, the volume of outstanding federal student loans more than quadrupled to reach $630 billion and annual spending for grants more than tripled to stand at $27 billion. The federal tax code also offers favorable taxation treatment to educational institutions. CBO has analyzed the costs and economic impact of these and other policies that affect education.
Dec 2013 - In 2012, the federal government spent $531 billion on investment—for physical capital; research and development; and education and training—which represented 15 percent of federal spending and 3 percent of GDP.
Sep 2013 - In the 2011–2012 academic year, 9.4 million students received $34 billion in Pell grants. How would tightening eligibility or changing grant amounts affect the program’s costs or the number of recipients?
Jun 2013 - The interest rate for subsidized student loans is currently scheduled to double from 3.4 percent to 6.8 percent on July 1, 2013. What would be the budgetary impact of changing interest rates for student loans?
Mar 2013 - In 2011, the federal government provided $607 billion in grants to state and local governments, accounting for 17 percent of federal outlays and a quarter of spending by states and localities. Nearly half of that amount was for Medicaid.
Feb 2013 - During the past 40 years, federal spending for major means-tested programs and tax credits for low-income households more than tripled as a share of gross domestic product. In 2012, such spending totaled $588 billion.
- cost estimateFebruary 20, 2014
- reportDecember 18, 2013
- blog postDecember 12, 2013
- blog postDecember 6, 2013
- blog postNovember 15, 2013
- presentationNovember 15, 2013
- cost estimateSeptember 13, 2013
- reportSeptember 5, 2013
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