U.S. Department of Education Makes Record $500 Million Investment in Charter Schools

The U.S. Department of Education announced a record $500 million investment in public charter schools on Monday, marking the largest allocation in the program’s history. Officials say the move is designed to expand education choice for families and strengthen outcomes as student achievement continues to lag nationwide.

The funding comes in response to the 2024 National Assessment of Educational Progress (NAEP) scores, which showed sharp declines in reading and math proficiency across the country. Department leaders said the grants reflect a redirection of resources from programs deemed ineffective toward initiatives that “meaningfully advance student success.”

“Today, the Department is making three massive investments – redirecting financial support away from ineffective and discriminatory programs toward those which support student success,” said U.S. Secretary of Education Linda McMahon. “We are proud to make the largest investment in the Charter Schools Grants Program in the department’s history.”

Support for HBCUs and TCCUs

In addition to charter schools, the department is significantly boosting support for Historically Black Colleges and Universities (HBCUs) and Tribally Controlled Colleges and Universities (TCCUs). Together, these institutions will receive a one-time $495 million increase on top of annual appropriations in fiscal year 2025.

HBCUs will receive more than $1.34 billion, a 48.4 percent increase from last year. TCCUs will receive more than $108 million, representing a 109.3 percent increase. The department said the funding acknowledges the historic contributions of these institutions in expanding access to higher education and opportunity.

Investment in Civics and American History

The department is also planning to invest more than $160 million in American history and civics programs in advance of the commemoration of the 250th anniversary of the United States’ founding. The funding will expand the Seminars for America's Semiquincentennial program, which drew more than 100 applications from universities and civil society organizations earlier this year.

Officials said the initiative reflects the Trump Administration’s priority of strengthening civics education and preparing students to become “active and informed citizens.”