In the complex world of education, one of the most challenging dilemmas is how to fairly distribute limited resources between students who struggle and those who excel. This balancing act has profound implications for children across the academic spectrum and their parents who want the best for them.

The Current State of School Resource Allocation

Despite increased overall spending on education—with public schools now spending an average of $17,280 per student annually (Education Walkthrough, 2024)—significant inequities persist in how these funds are distributed. The Education Law Center’s 2024 “Making the Grade” report reveals a troubling pattern: many states have implemented policies that potentially undermine funding equity, particularly as federal COVID relief funds approach their expiration.

These funding disparities don’t affect all students equally. According to School Finance Data (2024), “African American students are twice as likely as white students to be in districts with funding below estimated adequate levels, and 3.5 times more likely to be in ‘chronically underfunded’ districts.” This creates a situation where schools serving students with the greatest needs often have the fewest resources to address those needs.

The temporary lifeline of COVID-19 relief funding—an unprecedented $276 billion investment through the Education Stabilization Fund—has helped mitigate learning losses, but K-12 Dive notes that “while the $189.5 billion provided through the Elementary and Secondary School Emergency Relief program helped post-COVID learning recovery, there is still much to do to close gaps.” With these funds set to expire in September 2024, schools face a potential funding cliff that could exacerbate existing challenges.

How Resources Are Distributed Across Student Performance Levels

Support for Students Who Need Extra Help

Federal policies like No Child Left Behind (NCLB) and the Every Student Succeeds Act (ESSA) have increasingly focused resources on supporting struggling students and underperforming schools. This approach stems from the recognition that students from disadvantaged backgrounds often enter school already behind their peers and require additional support to catch up.

However, implementation of these well-intentioned policies has been inconsistent. The Wallace Foundation notes that “despite decades of standards-based reforms, states continue to struggle with finding ways to turn around low-performing schools and districts.” A report by Education Week revealed that “fewer than half of district plans for improving the bottom 5 percent of schools in each state meet bare minimum federal requirements, even though they received their state’s seal of approval.”

Resources for High-Achieving Students

At the same time, research indicates that funding for gifted education has not kept pace with general education funding increases. According to a study in SAGE Journals examining 35 years of state funding in gifted education, while there has been “an increasing trend in GATE [Gifted and Talented Education] funding,” these increases were “relatively modest when adjusted to 2021 real dollars.” Furthermore, “the increase in real dollar values of general education funding for K–12 from state allocation outpaced the increases in GATE funding for the same jurisdictions and period.”

This funding disparity occurs despite evidence supporting the effectiveness of programs for high-achieving students. The Thomas B. Fordham Institute argues that “we have ample evidence that a number of education programs targeted at advanced students significantly improve their learning outcomes.” They identify two primary benefits: helping “maximize the potential of participating students” and supporting “America’s economic, scientific, and technological prowess in an increasingly competitive global market.”

Interestingly, research from the National Bureau of Economic Research suggests that properly implemented advanced programs can particularly benefit high-achieving minority students: “participation in a fourth-grade GHA [gifted high-achiever] class had a significant positive impact on the test scores of high-achieving black and Hispanic students, who gained 0.5 standard deviation units in fourth grade reading and math scores.”