Charter schools are public schools of choice, according to the Nation's Report Card (NAEP). The U.S. Department of Education uses the term "public charter school." A public charter school is a publicly funded school that is typically governed by a group or organization under a legislative contract--a charter-- with the state, district, or other entity. In general, states fund charter schools through the following channels: (1) same state formula as funding traditional public schools; (2) eligibility for federal/state grants and/or categorical programs; (3) different funding sources based on authorizers or types of charter schools; and (4) calculation methods that differ from distributing funds for traditional public schools. No uniform funding system for charter schools exists across the country. In some states, charter schools are funded just like traditional public schools, but in other states, how to fund charters is determined by the entity that authorizes charter schools. The current trend is that states and local school boards are considering their own situation in terms of students' needs and creating more diverse funding programs for public schools.