In the United States, public charter schools educate millions of students, yet in many states, funding systems still fall short of funding those students and the schools that serve them fairly.
Traditional districts often receive dedicated local revenue for school buildings and maintenance, but charter schools rarely share in those funds. As a result, charter schools must redirect dollars intended for instruction toward rent, construction or facility debt.
In 2025, state leaders took bold action to correct that inequity. From increasing direct facilities support to expanding access to low-cost financing, lawmakers advanced policies that free up millions of dollars for charter schools to invest in teachers, classrooms and student opportunities.
This roundup includes key state actions in 2025 and what they signal for the future of fair funding for charter schools and students.
School funding in many states still reflects an outdated, one-size-fits-all approach that prioritizes inputs instead of outcomes. Today’s students need something better: funding systems that are student-centered, transparent and designed to empower families with meaningful choices.
Here are four principles shaping the modernization of school finance:
State leaders across eight states adopted policies aimed at leveling the playing field for public charter schools. Their actions share a common thread: ensuring more dollars reach classrooms and students instead of being consumed by facilities costs.
Review those state policy changes below:
Florida
Florida lawmaker’s’ state budget (SB 2500) increased charter school capital outlay funding to $248.6 million, up from $230 million in 2024. This furthers funding support for facilities where more than 400,000 students attend school. Additionally, with HB 1145, charter schools in Florida gained access to state grants to start or expand work-based learning programs.
Idaho
Idaho Rep. Douglas Pickett’s HB 331 increased the capacity of its highly successful charter school facilities program so that more public charter schools can access affordable facility financing and concentrate more of their resources in the classroom.
Indiana
Charter schools in Indiana will now benefit from shared local property tax revenue beginning in 2028 under SB 1, a priority of Gov. Mike Braun. Included in Rep. Bob Behning’s HB 1515 was a new pilot program that allows third-party management of transportation and facilities. These updates give public charter schools access to additional resources to better serve families and students.
Missouri
Missouri lawmakers appropriated $10 million in HB 2 to support charter school facility needs, a priority of Gov. Mike Kehoe. This funding reflects the state’s growing recognition that all public school students deserve access to safe, high-quality learning environments regardless of the type of public school they attend.
Ohio
Ohio lawmakers maintained funding of $1,000 per pupil for brick-and-mortar charter schools in the biennial budget (HB 96), supporting better access and more options for students attending charter schools.
Tennessee
Tennessee lawmakers expanded support for charter schools by including $25 million in the state budget (HB 1409) to improve access to facilities. This includes $20 million in per-pupil facility aid and $5 million to launch the Tennessee Equitable Facilities Fund, which provides revolving loan financing options.
Texas
Texas Rep. Brad Buckley’s HB 2 removed a longstanding cap on facilities funding for public charter schools, dramatically increasing the state’s investment from $60 million to $255 million. This funding increase will support robust public school choice options and ensures public charter schools can continue meeting growing family demand for innovative and effective educational models.
Utah
Utah lawmakers improved charter school funding by replacing the state’s revolving account with a more flexible revolving fund in HB 218. This update expands access to facilities financing so additional charter schools can grow and meet family demand.
In 2025, states generated $251 million in new funding for charter school facilities. These actions mark a significant shift toward more equitable funding systems and reflect rising momentum among state leaders who want all students—regardless of ZIP code or school model—to have access to high-quality learning environments.
Momentum is building, and more state leaders are recognizing that a strong public education ecosystem includes high-quality charter school options that are funded fairly. Look for more states to examine their funding formulas, transparency requirements and facilities policies in 2026.
Explore resources from our sister organization, ExcelinEd, including the Charter Facility Index, a methodology states can use to assess whether they are addressing the full facility needs of charter schools.
Listen to ExcelinEd’s Policy Changes Lives podcast, season 2, episode 2, where host Matthew Joseph welcomes Terry Ryan, CEO of Bluum and Board Chair of the Idaho Charter School Network, to explore how Idaho is leading the way in helping charter schools save on facility costs and invest more in student learning.
Read more from this blog series where we summarize which states took action on other key policy trends reshaping K-12 education across the country.
References
