Greetings—


Public investments are used to educate children, promote their health, safety, and well-being, ensure their basic needs are met, and help protect their families from financial hardship. Despite these benefits, federal spending on children has fluctuated over the years, with the latest Urban Institute research finding that it has decreased to almost prepandemic levels.

With two new analyses under
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Kids’ Share: Analyzing Federal Expenditures on Children , Urban researchers contextualize federal spending on children in recent years and compare it with state and local spending levels:

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What did federal spending on children look like in fiscal year 2024? situates the year’s spending within the broader federal budget and spending trends, finding that out of the $6.75 trillion spent by the federal government, just 8 percent was invested in children. From fiscal year 2023 to 2024, this amounted to a decline of over $25.8 billion in inflation-adjusted dollars spent on children.
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How does federal spending on children compare with state and local spending? explores how the distribution of state and local versus federal spending on children has changed from 2005 to 2022, finding that after adjusting for inflation, overall government spending on children grew from $14,530 to $20,270 per child, with most of this spending coming from state and local governments.
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Related Urban Institute analysis finds that while investing in children from families with low incomes is a proven way to reduce child poverty, improve children’s health, and allow families to invest in their children’s futures, the tax benefits for children included in the One Big Beautiful Bill Act (OBBBA) will primarily benefit middle- and high-income families and further the decline of federal government spending on children

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- The Stakeholder Outreach team

U R B A N I N S T I T U T E

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Urban Institute is a nonprofit research organization that believes in the power of evidence to improve people’s lives. Urban as an organization does not take policy positions but Urban’s independent experts are empowered to make recommendations based on their research.


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