This paper studies the impact of US interstate bank branching deregulation on school finance and student achievement, leveraging the deregulation as a state tax revenue shock. Total revenue and expenditure increase following the deregulation. The revenue increase stems mainly from higher state aid, with spending gains concentrated in capital outlays. Deregulation subsequently improves student achievement, with no distributional effects evident across students’ ability, race, or free lunch status. The findings highlight the spillover benefits of a centralized school finance system in channeling positive tax revenue shocks into public education funding and human capital formation.