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U.S. DEPARTMENT OF EDUCATION

Under the President’s leadership, we have turned our economy around and created 14 million 

jobs. Our unemployment rate is below five percent for the first time in almost eight years. Nearly 

18 million people have gained health coverage as the Affordable Care Act has taken effect. And 

we have dramatically cut our deficits by almost three-quarters and set our Nation on a more 

sustainable fiscal path.

Yet while it is important to take stock of our progress, this Budget is not about looking back at 

the road we have traveled. It is about looking forward and making sure our economy works for 

everybody, not just those at the top. It is about choosing investments that not only make us 

stronger today, but also reflect the kind of country we aspire to be – the kind of country we want 

to pass on to our children and grandchildren.

The Budget makes critical investments in our domestic and national security priorities while 

adhering to the bipartisan budget agreement signed into law last fall, and it lifts sequestration in 

future years so that we continue to invest in our economic future and our national security. It also 

drives down deficits and maintains our fiscal progress through smart savings from health care, 

immigration, and tax reforms. 

The Budget shows that the President and the Administration remain focused on meeting our 

greatest challenges – including accelerating the pace of innovation to tackle climate change and 

find new treatments for devastating diseases; giving everyone a fair shot at opportunity and 

economic security; and advancing our national security and global leadership – not only for the 

year ahead, but for decades to come.

The U.S. Department of Education works with states, communities, teachers, education 

institutions and others to promote student achievement, from preschool through higher 

education, and to help ensure that all students have access to a high-quality education so they can 

reach their full potential. This is critical for our national competitiveness – if all Americans have 

the opportunity to live up to their full potential, our economy will thrive and our citizens can 

secure sustainable careers that lead to productive lives.

To support this mission, the Budget provides $69.4 billion in discretionary funding for the 

Department of Education in 2017, an increase of $1.3 billion, or 2 percent, over the 2016 enacted 

level, adjusted for comparability. The Budget also proposes $139.7 billion in new mandatory 

spending and reforms over the next decade. While investing in all areas of education, the Budget 

emphasizes three in particular: (1) increasing equity and excellence; (2) providing support for 

teachers and school leaders; and (3) promoting access, affordability, and completion in higher 

education. 
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In addition, the Budget makes a cross-cutting commitment to using and developing evidence and 

data to maximize results for students and taxpayers. As a part of this effort, InformED, launched 

in 2016 and expanded in the 2017 Budget, will provide access to the Department’s data on a 

range of education-related topics, with intuitive and user-friendly tools, to help inform decisionmaking.

Funding Highlights: 

The President’s FY 2017 Budget provides $69.4 billion in discretionary funding and $139.7 

billion in new mandatory funding for the U.S. Department of Education. The Budget supports 

the implementation of the Every Student Succeeds Act, which embraces many of the reforms the 

Administration has long supported to improve outcomes for all students. It also makes crucial 

investments that build on the Administration’s work to advance educational equity and 

excellence, support teachers and school leaders, and promote college affordability and 

completion. These include:

 Investing $15.4 billion in Title I Grants to Local Educational Agencies (LEAs), to 

support efforts to provide equitable access to high-quality education and ensure strong 

support for improving low performing schools. 

 Ensuring access to high-quality preschool programs for 4-year-olds with $1.3 billion in 

mandatory funding in 2017 and $75 billion over 10 years for the President's landmark 

Preschool for All proposal. 

 Creating a new Computer Science for All initiative supported by $4 billion in mandatory 

funding and $100 million in discretionary funding. 

 Helping ensure equitable access to effective teachers and school leaders for low-income

and minority students in high-need schools by investing $1 billion in mandatory funds for 

the new RESPECT: Best Job in the World program to support a nationwide effort to 

attract and retain effective teachers in high-need schools, and $2.8 billion in discretionary 

funding to support teachers and principals at every phase of their careers.

 Supporting access to a well-rounded education through the Student Support and 

Academic Enrichment block grant. 

 Investing in the Stronger Together program, which encourages the voluntary 

development and support of innovative, ambitious plans to increase socioeconomic 

diversity through community-supported strategies.

 Funding for the Education, Innovation, and Research program for innovative preschool 

through 12th grade reform, and for the First in the World initiative, to advance innovative 

solutions and evidence for college opportunity and completion for high-need students.

 Supporting two years of free community college for responsible students through a $60.8 

billion mandatory investment in America’s College Promise over the next ten years; this 

proposal will also provide low-income students who attend Historically Black Colleges 
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and Universities and Minority Serving Institutions with up to two free years of college or 

significantly reduced tuition.

 Improving the Pell Grant program by allowing students to take courses year-round to stay 

on track or accelerate progress toward a degree; increasing the Pell Grant by $300 for 

students taking at least 15 credit hours per semester to promote on-time completion; and 

lifting the restriction on providing Pell Grants to incarcerated individuals eligible for 

release. 

Reforms: 

 Simplifying the FAFSA so families can more easily access resources that help pay for 

college, and helping student loan borrowers manage their debt by streamlining and better 

targeting income-driven repayment plans. 

 Promoting greater use of evidence , evaluation, and data across the Department’s 

programs to identify what works best to support student success throughout the education 

pipeline.

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Increasing Equity and Excellence

While the nation has made significant progress in increasing overall high school graduation rates, 

gaps between different student groups persist. There are many ways to close achievement gaps --

one key strategy is to improve resource equity. Today, there remain unacceptable inequities in 

the distribution of resources, including money, effective teaching, student support services, and 

challenging coursework. For example, children from low-income families are less likely to be 

enrolled in preschool than their more affluent peers – 41 percent compared to 61 percent, 

respectively. In addition, students of color have less access to rigorous coursework: only 57 

percent of black students and two-thirds of Hispanic students attend a high school where the full 

range of college prep coursework is offered compared to 71 percent of white students. Our 

nation’s new education law, the Every Student Succeeds Act, builds on the progress that States, 

schools, and educators have made to deliver on the promise of education as a fundamental civil 

right—true to the intent of the original Elementary and Secondary Education Act signed by 

President Lyndon Johnson in 1965. The Budget reflects funding where States and school districts 

most need resources to bring the promise of the law to life, advancing equity and excellence,

including: 

 $15.4 billion for Title I Grants to Local Educational Agencies (LEAs)—the cornerstone of 

Federal efforts to ensure that all students, including poor and minority students, students with 

disabilities, and English learners, graduate from high school prepared for college and careers.

A portion of the increase would be reserved to support State and local school improvement 

activities.
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 Historic investments in high-quality preschool anchored by President Obama’s Preschool for 

All proposal, which would provide mandatory funding for universal high-quality preschool 

programs for all 4-year-olds from low- and moderate-income families. In addition, the budget 

includes, for the Department of Health and Human Services, $350 million in discretionary 

funding for the jointly administered Preschool Development Grants program, a $100 million 

increase over the 2016 enacted level, to expand the reach of the program that currently 

supports 18 states’ efforts to expand high-quality preschool. In addition, preschool and early 

intervention services for children with disabilities through IDEA Preschool Grants and the 

IDEA Infants and Families program together receive an $80 million increase over the 2016 

enacted level. 

 $120 million for a new Stronger Together Grants program, which would encourage the 

development of innovative, ambitious plans to increase socioeconomic diversity through 

voluntary, community-supported strategies, and expand existing efforts in States and 

communities.

 $350 million for Charter School Grants, an increase of $17 million over the 2016 enacted 

level, and $115 million for Magnet Schools Assistance, an increase of $18 million over the 

2016 enacted level, to support the Department’s ongoing commitment to the expansion of 

high-quality schools and public school choice options. Magnet and charter schools can be 

important components of comprehensive strategies to increase socioeconomic diversity, and 

these programs will help reinforce the goals of the new Stronger Together initiative.

 $4 billion in mandatory funding over three years for the new Computer Science for All 

program, which would support state efforts to expand access for all students to computer 

science instruction and programs of study. The budget also includes the $100 million 

discretionary Computer Science for All Development Grants program for school districts, 

which would promote innovative strategies to provide high-quality instruction and other 

learning opportunities in computer science.

 $180 million for the Education Innovation and Research program, an increase of $60 million 

over the 2016 enacted level for its predecessor, the Investing in Innovation program, to 

support the creation, development, implementation, replication, and scaling up of evidencebased, field-initiated innovations designed to improve achievement and attainment for highneeds students.

 $128 million for Promise Neighborhoods, an increase of $55 million, to support communities 

that seek to break the intergenerational cycle of poverty through a continuum of coordinated 

services from birth through college.

 $11.9 billion for Grants to States under the Individuals with Disabilities Education Act 

(IDEA Part B) to support special education and related services and help States and LEAs 

improve results for children with disabilities. 

 $500 million for the new Student Support and Academic Enrichment grants to support States 

and districts in providing students with access to a well-rounded education, strengthening

school conditions for learning, and improving the effective use of technology.
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 $800 million, an increase of $63 million over the 2016 enacted level, for English Language 

Acquisition grants for English learners.

 $138 million, an increase of $31 million over the 2016 enacted level, for more vigorous 

enforcement of our Nation’s civil rights laws by the Department’s Office for Civil Rights, 

which ensures equal access to education. 

 $53 million, a $30 million increase over the 2016 enacted level, for Native Youth 

Community Projects, which support community-driven, comprehensive strategies to improve 

the college- and career-readiness of Native youth.

Providing Support for Teachers and School Leaders

Of all the school-related factors that impact student academic performance, great teachers matter 

most. Yet, teachers today too often do not have the preparation, support, opportunities for 

leadership, or the autonomy they need to succeed. Principals also have a significant impact on 

school culture and student outcomes and are a major factor in attracting, developing and 

retaining excellent teachers. The Budget invests in efforts to recruit, develop and retain the 

teachers and leaders our students need. Investments include:

 A new RESPECT: Best Job in the World program that would make a one-time, $1 billion 

mandatory investment to support a nationwide effort to attract and retain effective teachers in 

high-need schools by increasing compensation and paths for advancement, implementing 

teacher-led development opportunities to improve instruction, and creating working 

conditions and school climates conducive to student success. 

 $250 million for the Teacher and School Leader Incentive Program to support efforts to 

develop, implement, improve, or expand human capital management systems or 

performance-based compensation systems in schools in ways that attract, develop and retain 

talented, committed, and accomplished teachers in high-need schools. 

 $125 million for the proposed Teacher and Principal Pathways program for grants to 

institutions of higher education and nonprofit organizations, working closely with school 

districts, to create or expand high-quality pathways into the teaching profession, particularly 

into high-needs schools and high-need subjects such as science, technology, engineering and 

math (STEM).

 $100 million for Supporting Effective Educator Development to support nonprofits that 

provide evidence-based professional development activities and prepare teachers and 

principals from nontraditional preparation and certification routes to serve in high-need 

LEAs.

 $30 million for the School Leader Recruitment and Support program to improve the 

recruitment, preparation, placement, support, and retention of effective principals and other 

school leaders in high-need schools.

 $10 million for Teach to Lead grants to build on the promising work begun through the 

Department’s “Teach to Lead” convenings. The proposal would provide direct support to 
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teachers that develop innovative reforms with the potential for wider impact on improving 

student outcomes.

 A streamlined and expanded initiative to provide up to $25,000 in student loan 

forgiveness for teachers graduating from an effective preparation program who serve in lowincome schools, starting in 2021. This proposal would consolidate various postsecondary 

assistance options available for teachers, such as TEACH grants and the current teacher loan 

forgiveness program, into a single loan forgiveness program in which the benefit increases 

over time as teachers stay in high-needs schools.

Expanding Access, Affordability, and Completion in Higher Education

Higher education is one of the clearest paths to the middle class. At a time when jobs can go 

anywhere in the world, skills and education will determine success for individuals and for 

nations. Yet, far too many students do not go to college, or never complete their degree. The 

Budget builds on the Administration’s efforts to make college more affordable and accessible 

while putting forward important new initiatives to promote college completion. Students who do 

not complete their degrees are less likely to succeed in the labor market and have student loan 

default rates that are three times higher than those who graduate. To support college access, 

affordability, and completion, the Budget includes proposals that:

 Provide $60.8 billion in mandatory funding over the next decade for America's College 

Promise (ACP), which would create a new partnership with States to make two years of 

community college free for responsible students, letting students earn the first half of a 

bachelor’s degree or an associate degree and earn skills needed in the workforce at no cost.

ACP would also provide grants to four-year HBCUs and MSIs to provide new low-income 

students, including community college transfers, with up to two years of college at zero or 

significantly reduced tuition. 

 Support and encourage on-time degree attainment through Pell for Accelerated Completion

to provide year-round Pell availability to low-income students taking a full course load who 

have exhausted their award.

 Increase the Pell Grant by an additional $300 through the On-Track Pell Bonus for students 

taking at least 15 credit hours per semester in an academic year, the number of credits 

typically required for on-time completion.

 Foster innovative and evidence-based, student-centered strategies and interventions to 

increase the number of low-income students completing degree programs through the 

$30 million HBCU/MSI Innovation for Completion Fund competitive grant program.

 Reward colleges that successfully enroll and graduate a significant number of low-income 

students on time and encouraging all institutions to improve their performance through the 

new College Opportunity and Graduation Bonus program. 

 Reform the campus-based student aid programs to ensure funds are allocated to schools that 

provide a quality education at a reasonable price, particularly to their low-income students.
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 Fund fully the Pell Grant maximum award (estimated to be $5,935 in award year 2017/18, 

including an inflationary adjustment, and $6,235 for those taking at least 15 credits).

 Continue to index the Pell Grant to inflation indefinitely beyond the 2017 award year with 

mandatory funding to protect and sustain its value for future generations.

 Expand postsecondary opportunity to incarcerated individuals eligible for release through the 

Second Chance Pell proposal that would restore their Pell eligibility with the goals of helping 

them get jobs, support their families, turn their lives around, and strengthen their 

communities.

 Simplify the FAFSA by eliminating burdensome and unnecessarily complex questions to 

make it easier for students and families to access federal student aid and afford a 

postsecondary education.

 Improve and streamline income-driven repayment plans and create a single, simple, and 

better targeted plan for borrowers that will help them manage their debt, as well as simplify

and strengthen teacher loan forgiveness programs.

 Support implementation and rigorous evaluation of promising and evidence-based strategies 

that can support student success at scale through a $100 million First in the World initiative.

 Protect students and taxpayers by lowering the share of a for-profit institution’s revenues that 

can be derived from federal sources from 90 to 85 percent, the original ratio.

 Support the development, operation, and expansion of tuition-free, innovative, evidencebased, short-term, or accelerated job training programs in high-demand fields such as 

healthcare, manufacturing and IT through $75 million for the American Technical Training 

Fund. This initiative will be jointly administered by ED and the Department of Labor (DOL).