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State trust lands were granted by the
United States Congress The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...
to states upon entering the Union. These lands were designated to support essential public institutions which are primarily public schools. State trust land managers lease and sell these lands to generate revenue for current and future designated beneficiaries. Predominantly found in the western United States, 46 million acres of land are currently designated as trust lands and the proceeds from the lease and sale of these lands are distributed into a state's permanent fund and used for many purposes.


History

The General Land Ordinance of 1785 and the Northwest Ordinance established and systematized the policies that governed the disposal of the public domain to settlers and the creation of new states. Under the framework of these ordinances, a centrally located parcel in each surveyed township – section sixteen – would be reserved for the support of schools, and once the territory became a state, the state would receive title to these reserved parcels (as well as land grants to support other public institutions). This policy was later expanded to include additional reserved sections to support schools, as well as land grants to support other public institutions, such as universities for mechanical and agricultural education (now called
land-grant universities A land-grant university (also called land-grant college or land-grant institution) is an institution of higher education in the United States designated by a state to receive the benefits of the Morrill Acts of 1862 and 1890. Signed by Abraha ...
), hospitals, schools for the deaf and blind, and correctional facilities, among others. K-12 public schools were by far the largest beneficiaries of the land grant programs.


Survey system for division of land

The rectangular survey system established by the General Land Ordinance of 1785 and the Northwest Ordinance divided the public domain into 36-square mile areas of land, referred to as
townships A township is a kind of human settlement or administrative subdivision, with its meaning varying in different countries. Although the term is occasionally associated with an urban area, that tends to be an exception to the rule. In Australia, C ...
. Each
township A township is a kind of human settlem