Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In the Federated States of Micronesia, the Department of Education holds authority to administer and coordinate the national education system in line with constitutional provisions. Its mandate includes setting minimum standards for educational administration, programmes, and facilities to promote quality education; coordinating the acquisition and equitable distribution of foreign aid for education to maximise benefits for students; providing technical assistance to State education departments regarding administration, programming, facilities, and training; and supporting post-secondary education needs, including scholarships and transfers for FSM students both domestically and abroad.
Each State—Chuuk, Kosrae, Pohnpei, and Yap—operates its own Department of Education. According to the National Department of Education, these State Departments manage the public education system within their territories by setting academic standards, assessing student performance, monitoring schools, providing technical support, allocating funding, and administering grants. Their overarching goal is to ensure students receive high-quality education and that schools function effectively and efficiently.
The Bridging Gap Unit serves as the link between the National Department and the State Departments of Education. It provides technical assistance and support to States in implementing national policies and initiatives, including coordinating accreditation visits, proctoring examinations, and delivering teacher training.
However, the main funding for education comes from the United States Government under the provisions of the Compact of Free Association.
1. Education resources to subnational governments
The Federated States of Micronesia (FSM) operates under a federal system with a decentralised fiscal framework, whereby service delivery responsibilities are devolved to the individual states. National agencies primarily focus on policy formulation, regulation, and oversight functions. The National Department of Education receives a budget allocation and distributes a portion of funding to the states. However, the majority of education expenditure is managed and financed by the State Governments of Chuuk, Kosrae, Pohnpei, and Yap, largely supported by external revenues, including COFA grants, supplementary education grants, and other federal funding sources. No evidence was found of a centralised funding mechanism that allocates resources to states based on equity considerations.
2. Education resources to schools
Financial support mainly comes from external partners like the United States. These funds are channeled through the National Department of Education (NDoE) before being allocated to the State Departments of Education (SDoE).
For example, a primary source of educational funding comes from the United States government under the COFA agreement. This aid is coordinated by the NDoE and then distributed to each SDoE.
In August 2025, the FSM Congress adopted numerous grant resolutions to address various socio-economic issues, including education. While the Supplemental Education Grant (SEG) program previously existed, the funding structure changed, with U.S. assistance increasingly provided through trust funds designed to generate revenue.
In 2017, the Asian Development Bank, the Marshall Islands, and the Federated States of Micronesia launched a $16.8 million grant initiative (with contributions from Australia and both national governments) to improve basic education. The project aims to strengthen literacy and numeracy in primary schools by improving teacher training, student assessments, bilingual resources, and community engagement. It builds on prior pilot programmes, addressing persistently low student performance in reading and mathematics in both countries.
3. Education resources to students and families
No information was found about programmes that transferred resources to disadvantaged students or households.
4. Social policies and family support programmes
No evidence was found of programmes that include an education component and provide resource transfers directly to disadvantaged students or households.
5. School meal programmes
According to the Pacific School Food Network, the Department of Education of the Federated States of Micronesia provides school meals to primary and secondary students.
With support from the Global Partnership for Education, the Federated States of Micronesia is constructing and equipping cooking facilities in 46 schools. In addition, a sustainable school feeding strategy is being developed, which includes nutrition guidelines and measures for effective programme management.
A regional secondary school feeding programme operates in the state of Pohnpei, providing weekday lunches to all public secondary schools, with private schools able to participate on a voluntary basis. The programme is ongoing and covers the full school year, but does not mandate the use of locally sourced foods, despite some local procurement in practice.
This profile was reviewed by Sabrina Regmi, researcher.
