(The Center Square) − Federal dollars have become a cornerstone of Louisiana’s education system. In recent years, they made up as much as 44% of the Louisiana Department of Education’s budget−amplified by more than $4 billion in pandemic relief aid.
Nationwide, federal education dollars usually make up just 13% of annual school system funding, but Louisiana’s dependence is growing rapidly. The state has seen a 233% increase in federal education funding since 2010, according to the Pelican Institute for Public Policy.
That reliance reflects a broader pattern across state government. Louisiana is the third most dependent state in the nation on federal funding, with 43% of its total state budget funded by federal dollars in 2023 − up from 36% in 2014.
The state’s dependence surged after the 2016 expansion of Medicaid, which brought in billions of federal dollars but also required significant state matching funds. Disaster recovery efforts following hurricanes Laura and Ida, and the infusion of pandemic relief funds beginning in 2020, further deepened Louisiana’s reliance on Washington.
In the education sector, major federal programs like Title I and II, the Individuals with Disabilities Education Act, and the 21st Century Community Learning Centers program drive much of the funding. Louisiana alone secures $14.6 billion annually in IDEA funding.
The Pelican Institute warns that the funding comes with a bureaucratic price in a new report.
Each of these programs requires extensive compliance documentation, plan submissions and federal approvals − even when state lawmakers try to enact reforms. Louisiana’s latest consolidated state plan, which governs how it meets federal Title I–VII requirements, spans 126 pages and covers 44 individual compliance items.
For every substantive change to that plan−even one passed by the Legislature − the LDOE must submit a revised version and seek federal approval, the report notes.
IDEA, the federal law ensuring services to children with disabilities, imposes even more layers. States must maintain a State Performance Plan covering 17 indicators, updated every six years and followed by detailed annual performance reports. Louisiana’s most recent report clocked in at 109 pages.
“When time must be spent on new data collection and reporting tasks with firm and often short deadlines, the burden on the agency may be massive depending on the technology capabilities and available staff support,” the report warns.
The COVID-era funds briefly loosened some of the red tape, allowing local school systems quicker access to money. But those funds, too, came with extensive reporting requirements − and little centralized oversight. State agencies had little control over how districts spent the money, even as students faced massive learning loss.
“State education agencies were not able to direct local school leaders to prioritize uses of the funds for things like tutoring, afterschool programming, extended learning time, and other individual student supports,” the report states.
As the federal debt looms and talk of government efficiency gains momentum, the Pelican Institute calls on Louisiana policymakers to take stock of the tradeoffs embedded in federal funding − not only in education but across the broader budget.
“While these dollars may seem like a short-term fix,” the report concludes, “they often leave the state with long-term obligations, misaligned priorities, and reduced flexibility to meet local needs.”
