Trump administration withholds school funding, spelling uncertainty for Minnesota budgets

The Trump administration is withholding more than $6 billion in funding to the nation’s schools — adding uncertainty to the already stressed budgets of Minnesota school districts.

At risk are tens of millions of already-approved dollars for the instruction of English-language learners, plus teacher training, after-school opportunities and adult basic education programs across Minnesota. Children of migrant farm workers and fishing families could lose out, too.

In an update to districts Tuesday, Minnesota Department of Education lobbyist Adosh Unni wrote that the Trump administration informed all states Monday that the funding was under review, despite congressional action authorizing the aid to be released July 1.

School districts across Minnesota recently approved their budgets, so they might have to reopen them if the money doesn’t come through.

The potential upheaval comes on the heels of widespread school cuts and teacher layoffs and as districts make moves to ask voters for more money — via property taxes — in November.

Education Minnesota, the state teachers union, estimates districts across the state stand to lose up to $67 million in the freeze, which the union says represents something more than another cut.

“This is not just a budget cut — it’s an assault on the rule of law and our commitment to every child’s right to a quality education,” union president Monica Byron said in a statement Tuesday.

The Trump administration signaled its intent months ago to dismantle the U.S. Department of Education. It has since then said it wants school spending to align with Trump’s priorities.

Brenda Lewis, superintendent of Fridley Public Schools, said the unpredictability is “incredibly difficult.”

“It’s especially concerning to see education funding being used as a political lever, when the stakes for students, staff and families are so high,” she said.

Federal funds make up about 4% of the district’s $56.3 million budget, Lewis said, but that money is directed toward high-need student populations and “critical services that we simply cannot provide at the same level without federal support.” More than 70% of Fridley public school students live in poverty and 80% are of color.

Afterschool and summer programming shouldn’t be considered “extra” school offerings, Lewis said. “They’re essential to helping our students succeed and stay engaged.”

Most districts are still in the process of determining what the withholding of funds means for their budgets and programs.

Cory McIntyre, superintendent of Anoka-Hennepin School District, pointed out that the school board for the state’s largest district already approved a budget for the next school year, which included the grants.

“This action would take over $1.6 million from our budget that is used to provide vital academic and behavior support, priorities that are amongst the highest in the district,” McIntyre said in a statement.

Kay Villella, spokeswoman with Osseo Public Schools, said federal funding accounted for less than 5% of the district’s revenue in fiscal year 2025 and that it has a “healthy fund balance that will allow for time to determine the impact and develop a plan for handling any decreased or eliminated federal funds.”

Shawn Hogendorf, spokesman for South Washington County Schools, said in a statement the district remains committed to the teacher development and English-language learner programs funded by about $400,000 in federal grants now being withheld.

Because of budgeting cycles, the district typically has to make programming decisions — including staffing — before knowing the actual amounts of federal awards, Hogendorf said.

But, he said, “in recent memory, we have never seen Congress authorize funds and the administration not release those dollars.”

The Minnesota Department of Education (MDE) and individual districts are still working to assess the impact of potentially losing the grant money.

Here’s where some of those grants went in Minnesota during the 2024-2025 school year, according to MDE:

A potential pullback of funds used to help teach English to immigrants could land hardest in Minneapolis and St. Paul, both of which have seen overall enrollment gains driven in large part by new Latino or Hispanic students.

On Wednesday, St. Paul Public Schools said in a statement that English-language learner support was one of several funding categories in limbo, and it estimated a total potential loss of at least $7.2 million.

“While we seek greater clarity, the district is not making any immediate reductions in staffing or programs,” the statement said. “For the time being, a combination of funding sources will be used to fill in any gaps created by this unprecedented disruption in funding.”

Minneapolis is hoping for the release of about $4.5 million in federal funding. The district plans to use the money to help cover staffing to reduce class sizes, for professional development and for support of students learning English, along with other activities.

Eleanor Hildebrandt of the Minnesota Star Tribune contributed to this story.