In this brief, we examine how spending on children varies between state and local governments and the federal government. We describe the composition of this spending across levels of government and compare spending on children with spending on adults 65 and older.

Why This Matters

Public spending on children represents an investment in our nation’s future. Government programs that support children’s health, education, economic security, development, and well-being can help ensure that children have the opportunity to meet their potential—benefiting children, their families, and society more broadly. Exploring spending trends across levels of government can reveal to policymakers the opportunities that are available to invest in children. Moreover, since state spending decisions are not uniform across the nation, understanding how they differ from federal spending can provide context as to why children might experience different outcomes depending on where they live.

What We Found

Our analyses revealed the following:

• State and local expenditures typically make up about 65 percent of all spending on children. The federal government contributed to a greater share of child-focused investments after the Great Recession and COVID-19 pandemic.
• State and local spending on children is done largely through public preK-12 education programs, while federal spending on children is distributed through a greater variety of programs.
• In 2022, spending on children across all levels of government was about half the spending on adults 65 and older.
• The federal government funds almost all spending on older adults, whereas state and local governments fund about three-fifths of spending on children. Because states have more discretion on how to allocate spending, investment on children can vary, potentially contributing to differences in child outcomes by state.

How We Did It

The Kids Share team compiles and analyzes annual data on programs serving children and estimates expenditures on children by level of government. The team also estimates spending on programs serving older adults. These estimates are then adjusted for inflation and for the US population to better understand how spending on children and adults have changed over time.