This fact sheet from the Learning Policy Institute examines the connection between education funding and student outcomes, emphasizing that money matters—especially when used effectively and distributed equitably. It explains that public schools in the United States are primarily funded by state and local sources, which leads to deep funding disparities due to reliance on uneven property tax revenues. These disparities disproportionately impact districts serving more students of color and those in low-income communities. The fact sheet also highlights the unique challenges U.S. schools face compared to other countries, including higher child poverty rates and weaker social safety nets, placing greater responsibility on schools to meet students’ broader needs. Drawing on research, the tool shows that increased education funding improves outcomes such as academic achievement, graduation rates, and long-term success, particularly for students with the greatest need. This resource can support school and system leaders in making informed decisions about funding priorities and policy.