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Which States Are Best At Funding Education?

BY FORBESCEOS Mar 14, 2026

Which States Are Best At Funding Education?

Which States Are Best At Funding Education?

When experts compare which U.S. states are best at funding education, they usually look at per-pupil spending (how much money a state spends on each student per year). This includes teacher salaries, school facilities, technology, transportation, and educational programs. The national average is roughly about $17,800 per student, but some states spend far more than others.

Top U.S. States for Education Funding

Below are the states that fund education the most strongly, based on recent spending data.

Top U.S. States for Education Funding

1. New York

Per-student spending: about $30,000–$33,000 per year

Consistently ranks #1 in the United States for education spending.

Funding supports strong teacher pay, modern school infrastructure, and extensive student programs.

2. Vermont

Around $26,000–$27,000 per student

Strong state funding system with heavy investment from taxes.

Small school districts and rural transportation needs also increase spending.

3. New Jersey

About $26,000 per student

High local property-tax funding contributes significantly to education budgets.

The state focuses heavily on equity in funding for poorer districts.

4. Connecticut

Around $25,000 per student

Strong public school investment with high teacher salaries and education standards.

5. Massachusetts

Around $24,000+ per student

Frequently ranked among the best education systems in the U.S. due to consistent funding and strong academic outcomes.

6. Alaska

Around $22,000 per student

Higher spending partly due to remote communities, transportation costs, and small schools.

7. New Hampshire

Around $21,900 per student

Significant local property-tax funding supports public schools.

8. Illinois

About $21,800 per student

Large urban school systems and strong state funding formulas contribute to higher spending.

9. Pennsylvania

About $21,400 per student

Balanced funding from state and local sources helps maintain education investment.

10. Rhode Island

Around $21,100 per student

Smaller population allows higher spending per student compared to larger states.

Key Patterns in Education Funding

Northeastern states dominate the top rankings. Most high-spending states are in the Northeast.

Cost of living affects spending. States with higher living costs often spend more per student.

Local taxes matter. Property taxes fund a large portion of U.S. public schools.

Rural states may spend more per student due to transportation and smaller class sizes.

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