This paper examines effects of public funding for religious and private schools in the Netherlands and England over the last century. These two countries were chosen because both have religious schools fully funded by the state. The paper shows that state funding has disadvantages and advantages. Funding has been associated with considerable, yet variable, state control and regulation over such aspects as curriculum, staff, and governance. At various points in the past, both governments have effected powerful shocks to the religious schools that have received funding. There has also been a gradual increase in regulation, especially since the 1990s. This increase in state regulation and control is such that now some religious schools in both countries do not seek state funding but prefer to remain dependent on fees. The benefits of state funding are seen as being outweighed by the decrease in autonomy. A final twist is that private schools not receiving state funding have also experienced increased state regulation at both the country and European levels. Furthermore, all schools have also been influenced by issues of standards and league tables that have brought pressure to conform to a narrow version of schooling. (Contains 57 references.) (Author)