Department of Education

The Department of Education operates a range of subsidy programs for elementary and secondary schools. That aid is matched by rising federal regulatory control over the schools, but federal intervention has not generally lifted academic achievement. The department also provides subsidies to higher education through student loans and grants. Unfortunately, that aid has fueled inflation in college tuition and is subject to widespread abuse.

The department will spend $107 billion in 2010, or about $900 for every U.S. household. It employs 4,100 workers and operates 169 different subsidy programs.


Downsize This!

  • K-12 Education Subsidies. Federal intervention into the nation's schools has consumed great deals of taxpayer money and created large bureaucracies to administer the funding and regulations. However, it has produced little, if any, improvement in academic results.
  • Higher Education Subsidies. Federal grants and loans for college and university students have contributed to soaring inflation in tuition costs. Student grant and loan programs have also been subject to high levels of fraud and abuse.

Spending Cuts Summary

Timeline of Government Growth

  • See this timeline for key events in the department’s growth.

Reading Room

  • Here are background studies that examine the operations and shortcomings of the department’s programs.

Cato Experts

"Only a truly competitive educational industry can empower the ultimate consumers of educational services—parents and their children."

- Milton Friedman, Wall Street Journal, September 20, 2000