4 July, 2025
trump-administration-withholds-7-billion-in-school-funding-impacting-minnesota-districts

The Trump Administration has announced a decision to withhold nearly $7 billion in federal funding intended for K-12 schools across the United States, a move that has sparked concern and uncertainty among educators and state officials. In Minnesota alone, the Department of Education reports that the state could lose approximately $74 million, affecting up to 45 school districts.

The funding, which Congress had already approved, was scheduled for distribution on July 1. However, the Minnesota Department of Education (MDE) received a brief notification from the U.S. Department of Education late on June 30, indicating a review of the Fiscal Year 2025 funding for several grant programs. The notification, sent from a no-reply email address, stated that decisions on submissions and awards for the upcoming academic year had not yet been made.

“Given the change in Administrations, the Department is reviewing the FY 2025 funding for the [Title I-C, II-A, III-A, IV-A, IV-B] grant program(s), and decisions have not yet been made concerning submissions and awards for this upcoming academic year,” the notification read. “The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.”

Impact on Minnesota Schools

The withholding of funds is particularly concerning for districts like North St. Paul-Maplewood-Oakdale, which stands to lose $621,716 primarily allocated for English learners and their educators. Superintendent Christine Tucci Osorio expressed the critical nature of this funding, which supports staff salaries, technology tools, professional development, as well as adult literacy and summer programs.

“That’s a funding bucket that has a very direct impact on our English language learners and yet by law, we all have to educate all of our students and we want to educate all of our students,” said Tucci Osorio. “Not to mention the moral and ethical obligations, as well.”

According to MDE Commissioner Willie Jett, the delay is “creating unnecessary uncertainty.” Jett has sent a letter to the U.S. Department of Education seeking clarification on the timeline and expected release of the funds, and has also briefed the Minnesota Congressional Delegation on the historical usage of these funds within each congressional district.

Funding Breakdown by District

The withheld funds cover a range of programs under different Titles, each supporting various educational needs:

  • Title II-A: Supports recruitment, retention, and professional development of educators.
  • Title III-A: Aims to enhance English language proficiency.
  • Title IV-B: Provides academic enrichment opportunities outside school hours.
  • Adult Basic Education: Improves reading, writing, math, and English language skills.

For example, Saint Paul Public Schools received $2,239,378 in Title II-A funding last year, while Minneapolis Public Schools received $2,229,902. These funds are crucial for maintaining educational standards and supporting diverse student populations.

Potential Legal and Financial Consequences

The decision to withhold funding has prompted legal actions, with the NAACP filing a preliminary injunction to prevent the Trump Administration from dismantling the Department of Education. The potential absence of these funds could force districts to seek alternative funding sources, including local levies, to fill the gap.

“This is about teaching literacy and math and science for professional development and making sure that we’re making headway on achievement and growth,” emphasized Tucci Osorio.

The announcement comes amid broader debates over federal education policy and funding priorities. As districts await further clarification, the uncertainty poses significant challenges for planning and resource allocation in the upcoming school year.

As the situation unfolds, educators and policymakers are closely monitoring developments and preparing for potential adjustments to ensure that educational services continue without interruption.