$90B Funding Gap Underscores Need for U.S. School Building Updates
Date Posted: January 13, 2026
Posted In: Discussion, News,
From Facility Executive: The 2025 State of Our Schools report, released by the 21st Century School Fund, International WELL Building Institute (IWBI), and the National Council on School Facilities (NCSF), shows that the U.S. now faces a $90 billion shortfall in school facility funding every single year, despite significant progress local school districts have made to ramp up their investments.
Since its earlier releases in 2016 and 2021, the report has tracked a steep and alarming rise in the nation’s school facilities funding deficit. What was a $46 billion gap in 2016 grew to $85 billion in 2021 and has continued to widen as school construction costs climb, building inventories expand, and aging facilities require more extensive maintenance, modernization, or replacement.
“Even as local districts have stepped up by increasing their annual spending on school facilities from $95 billion in 2016 to more than $150 billion now, they are still falling behind,” said Mary Filardo, Executive Director, 21st Century School Fund and lead author of the report. “As the funding gap for our critical school infrastructure grows, it becomes even harder to climb out of this hole unless we begin to better share the load across levels of government and embrace a dynamic solution set that ensures every public dollar delivers a stronger return on investment.”
In the United States, PK-12 school facilities represent the second largest sector of public infrastructure investment, surpassed only by highways. These buildings are where nearly 60 million students, teachers, and staff spend their days, making them among the most essential pieces of community infrastructure we have. Yet unlike transportation infrastructure, where federal and state governments shoulder most of the costs, school facilities are primarily left to local districts. The report finds that local districts bear 80% of school facility funding, with states contributing 17% and the federal government just 3%.