How Education Funding Works
Most K-12 schools receive the bulk of their funding through state and local sources, with federal dollars making up roughly 8–10% of total revenue nationally. But that federal share is concentrated in programs with significant weight: Title I for high-poverty schools, IDEA for special education, and Title IV for student support and enrichment. Understanding where each dollar comes from—and what it can fund—is the foundation of effective grants management.
Beyond the formula-driven federal allocations, competitive grants from federal agencies, state education departments, and private foundations offer schools additional resources for specific programs, technology, professional development, and student support services.
Major Federal Education Grant Programs
Title I, Part A: Improving Basic Programs
Title I is the largest federal K-12 grant program, distributing roughly $17 billion annually to schools with high concentrations of students from low-income families. Schools receiving Title I funds can use them for instructional staff, extended learning time, family engagement, professional development, and support services. Most Title I funds flow to schools through their district; individual schools don't apply directly to the federal government.
If your school receives Title I funds, understanding the allowable uses is critical. Title I dollars supplement (not supplant) state and local spending, meaning they can't be used to fund activities the school would have funded anyway. Your district's Title I coordinator can help navigate these rules.
IDEA (Individuals with Disabilities Education Act)
IDEA Part B formula grants provide states with funding to support special education and related services for students with disabilities. Like Title I, these funds flow through states to districts. Schools can use IDEA funds for specialized instruction, assistive technology, related services (speech therapy, occupational therapy, counseling), and transition planning for students with IEPs.
Title IV, Part A: Student Support and Academic Enrichment (SSAE)
Title IV-A grants give schools more flexibility than most federal programs. Allowable uses include well-rounded educational programs (arts, science, foreign language), safe and healthy schools activities, and technology infrastructure and use. Districts allocate Title IV-A funds to schools; the amount per school depends on enrollment and district priorities.
E-Rate (Schools and Libraries Program)
Administered by the FCC through USAC, E-Rate provides discounts of 20–90% on internet access, internal network infrastructure, and voice services. Discount levels are based on the percentage of students eligible for free and reduced-price lunch—schools with 75%+ FRPL receive the maximum 90% discount. E-Rate is not a grant in the traditional sense, but for technology-focused needs, it's often the most valuable federal program available.
E-Rate applications open in January each year for the following funding year. Missing the window means waiting 12 months. Working with an E-Rate consultant or your state's E-Rate coordinator is advisable for first-time applicants.
Competitive Grants from ED
The Department of Education also runs competitive grant programs for specific priorities. Current programs include:
- Education Innovation and Research (EIR): Funds development and scaling of evidence-based practices. Awards range from $3M (early-phase) to $40M (expansion-phase).
- Full-Service Community Schools: Grants for schools becoming hubs for health, social, and academic services in high-need communities.
- Literacy Programs (Striving Readers): Competitive grants to states and districts for comprehensive literacy instruction from birth through grade 12.
- Promise Neighborhoods: Community-based organizations working to improve educational outcomes in high-poverty neighborhoods.
State Education Grants
State education agencies (SEAs) administer both federal pass-through dollars and state-funded competitive grant programs. Common state-level programs include:
- Early literacy initiatives (many states have dedicated K-3 reading programs following the "science of reading" research)
- STEM and computer science education grants
- Teacher recruitment and retention programs, including loan forgiveness and stipend programs
- Arts education grants, often through state arts councils in partnership with the state education agency
- School safety and mental health grants
Your state education agency's competitive grants office publishes current Notices of Funding Availability (NOFAs). Sign up for their mailing list—many state grants are undersubscribed simply because schools don't know they exist.
Foundation Grants for Schools
Private foundations provide a substantial share of education funding outside the government system. Major funders include:
- Bill and Melinda Gates Foundation: Focuses on college and career readiness, teacher effectiveness, and systemic reform. Primarily funds larger districts and organizations, but local schools can access Gates money through district partnerships.
- Walton Family Foundation: K-12 education reform, charter school development, and teacher pipeline programs.
- Bezos Earth Fund and Bezos Family Foundation: Early learning, parent engagement, and community schools.
- Local community foundations: Community foundations in most major metros run education grant cycles with smaller awards ($5,000–$50,000) that are accessible to individual schools and teachers. Many also administer teacher mini-grant programs with awards under $2,000 that can be obtained in a few weeks.
Donors Choose is also worth noting: it's not a traditional grant, but it's one of the fastest ways for a classroom teacher to get $500–$5,000 for specific materials and projects, with no school administration involvement required.
Building a Strong Education Grant Application
- Root your need in data: Student achievement data, demographic data, and program evaluation data are the foundation of a compelling education grant application. Show the gap you're closing, not just the activities you'll run.
- Connect to evidence-based practice: Most federal and foundation grants require applicants to cite evidence for their proposed approach. Align your program to the What Works Clearinghouse or similar evidence repositories.
- Show sustainability: Funders don't want to create dependency. Explain how you'll sustain the program after the grant ends—through district budget, other grants, or community partnerships.
- Involve the community: Family and community engagement is a scoring factor in many education grants. Document how you've involved parents, community members, and students in designing the program.
Finding the Right Programs
Education grant opportunities are spread across federal agency portals, state education websites, and dozens of foundation databases. FindGrants.io indexes grants from all of these sources and matches them to your school's profile—grade levels served, geographic location, student demographics, and program focus areas. The ranked results cut the research time significantly and surface programs from state agencies and foundations that rarely appear in a standard Grants.gov search.