The Catholic school system in the United States is undergoing significant changes in size, populations served and the funding models which have traditionally supported such schools. The closing of many schools in urban areas in the last 10 years in conjunction with the rising costs of schooling suggests that unless a new approach to funding schools is developed, the future of Catholic education in the United States is seriously threatened and with it the American Church. This article explores the link between traditional sources of funding Catholic schools and the increased role of federal and state funds. The rise of Charter Schools has added a significant model for Catholic schools to emulate in regarding future sources of funding. Three strategies for future funding are explored with an emphasis on the development of Faith-based Charter Schools and the development of 'Catholic' Charter Schools.