Originally 
posted by 
Mapleson:
martian, US education is funding from all level of government.  Federally, there is the Department of Education and the "No Child Left Behind Act", which can withhold funding from a school or district based on academic results.  The majority of funding comes from the state level with local property taxes making up the remainder.  In 1973, the U.S. Supreme Court ruled that school funding was not a matter of the U.S. Constitution, so funding is left to interpretations of individual State Constitutions.  Some states have state-wide curriculums, while others devolve the material covered to individual school districts. 
 
Well, NCLB is one of a couple laws they (DoED) deals with regarding federal funding to states.  There's also ESEA, IDEA, Higher Ed Act, Perkins, etc.  But yah, basic gist is right regarding local schools or school districts potentially losing some funding (and qualifying for different funding and different legal mechanisms) if they fail to meet differing levels of what's known as AYP or adequate yearly progress.  But it's a fairly complex formula that they've changed a dozen times over since I worked with it.  
And you hit on a great point.  What's interesting/unique about the US education system is the variance in curriculum.