Federal funding for education is at an all-time high. The U.S. Department of Education (ED) is providing nearly $38 billion this year to states and school districts, primarily through formula-based grant programs, to improve elementary and secondary schools and meet the special needs of students. The vast majority of education spending still occurs at the state and local levels. However, federal funding has increased dramatically over the last few years. This trend is opening new opportunities for funding in the social studies. Another important change is increased federal flexibility in how funds are spent. Federal flexibility allows state and local school districts to transfer up to 50 percent of the funding they receive for Teacher Quality, Education Technology, Innovative Programs, and Safe and Drug-Free Schools to any of these programs or to Title I. This allows for more local discretion to determine which programs are most important to fund.