NYC to Spend Record $42,168 Per Student in 2025-26, Highest in Nation

Prime Highlights

New York City will spend a record $42,168 per student in the 2025-26 school year, the highest in the U.S. and nearly double other major cities.
Officials say the historic investment, driven partly by smaller class mandates, reflects a strong commitment to improving public education outcomes.

Key Facts

The Department of Education’s $41.2 billion budget accounts for one-third of the city’s total spending, even as student enrollment continues to decline to 815,000 students.
NYC’s per-student spending is nearly twice that of Chicago ($22,000) and Philadelphia ($23,000), raising concerns over efficiency and long-term sustainability.

Background

In 2025-26, New York City will spend a record amount of $42,168 per student in the school year, the highest in the U.S. and nearly twice the level of other major cities. The Department of Education’s $41.2 billion budget represents one-third of the city’s total spending.

The increase, about $2,000 more than last year and 36 percent higher than five years ago, comes as student enrollment continues to decline slightly. This year, enrollment stands at around 815,000 students, a decline of 3,000 compared to last year.

One of the reasons for the surge is the new law on smaller classes by the state of New York that mandates the DOE to recruit over 3,700 new teachers. This action should enhance learning conditions, but has also increased payroll and benefits expenses. Additional costs in the budget are transport, pensions, employee benefits, school support services and debt repayment.

City officials argue that the historic investment shows a strong commitment to public education. They believe smaller classes and more staff will eventually improve student outcomes.

Still, questions remain. Recent scores on English and math have only improved by a small margin, casting doubt on whether increasing funds is improving learning. Parents, educators, and policy experts continue to debate how funds should be used to address poverty, curriculum gaps, and inequities that weigh heavily on student performance.

Compared with other major districts, New York’s numbers stand out. Chicago spends about $22,000 per student, and Philadelphia $23,000, barely half of what New York will spend. The gap has fueled debate over whether the city’s spending is cost-effective or sustainable.

While the DOE launches the new academic year with record funding, it remains under pressure to turn that investment into results. For New York City, the challenge will be proving that unmatched spending can deliver stronger academic outcomes and set a model for the nation.