The federal government allocated approximately $141 billion on education in fiscal year 2014. Calculating that figure is challenging. Federal programs administered by the U.S. Department of Education appear in two separate parts of the federal budget, and other agencies administer large programs as well. Furthermore, measuring spending on the federal student loan program is not straightforward, and the government provides significant subsidies for higher education in the form of tax benefits.
Nearly all federal education programs are funded through the annual appropriations process, but a few, such as student loans, are funded on an ongoing basis through mandatory spending. The appropriations for the Department of Education totaled $67.3 billion in fiscal year 2014, accounting for 6.0 percent of the $1.1 trillion in total appropriations funding across all federal agencies that year.
Numerous programs make up the $67.3 billion fiscal year 2014 appropriation for the U.S. Department of Education. The majority of funding went to just three programs: Elementary and Secondary Education Act Title I Grants to Local Education Agencies, the Individuals with Disabilities Education Act (IDEA) State Grants, and the Pell Grant program for college students. Collectively these three programs received $48.6 billion in fiscal year 2014.
A relatively small number of federal education programs are funded through mandatory spending. Budget figures for the largest of these, federally subsidized student loans for postsecondary education, are difficult to compare to programs funded through the appropriations process. This is because the budget reflects student loan costs under a special set of accrual accounting rules that are meant to show the lifetime costs of loan cohorts in present value terms. More information on federal student loan budget rules can be found here. The main programs other than student loans that regularly receive mandatory funding include a part of the Pell Grant program and Vocational Rehabilitation state grants.