Unit-based funding is one of the three most common state secondary Career Technical Education (CTE) approaches that fall under the categorical funding model. With this approach, states distribute funds based on a set of educational inputs (and their related costs), known as units, used to deliver CTE in Local Education Agencies (LEAs). Units may include pupils, instructors, equipment, materials, transportation or administrators.

Unit-based formulas may provide different rates of reimbursement for CTE programs and learners. Seven states — Alabama, Delaware, Idaho, Massachusetts, Mississippi, Missouri and Washington — use a unit-based approach.