Although Adam Smith’s thoughts on education have attracted significant scholarly attention, his ideas on how the primary education of children should be funded has been relatively neglected. I re-examine Smith’s nuanced position and argue that Smith had a more flexible view of education funding than has hitherto been recognised. By extending the Scottish educational model, Smith proposed a direct contribution of government to the costs of educating poor children. In addition, his discussion of scholarships indicate that he favoured further indirect (...) subsidies to education. These significant subsidies were designed to ensure that education was accessible and affordable to most people in society, who would only have to contribute a small sum. Furthermore, there is reason to believe that for pupils whose family were unable to support their education, Smith might have favoured a full payment of their fees. Situating Smith’s intervention on education funding within the context of the English and Scottish educational systems reveals a discussion of the role of government in society. The Smithian state that emerges from such a reading actively intervenes where necessary to prevent ‘a publick evil’ (WN V.i.f.60). (shrink)