Federal education cuts would hammer poorest Minnesota schools, study finds

Federal education dollars are now at risk thanks to President Donald Trump’s dismantling of the U.S. Department of Education, which could significantly hurt Minnesota public school districts — the majority of which receive at least 10% of their budgets from the feds, according to the Economic Policy Institute, a left-leaning think tank.

Tribal nations within Minnesota’s borders would be even more impacted, as a larger share of their budgets comes from the feds. The Red Lake Public School District received nearly 40% of its revenue from federal funding in fiscal year 2022, according to EPI.

The Trump administration promised that closing the department won’t result in cutting federal funds, but the people who are responsible for determining whether schools qualify for a grant could soon be let go, risking the reliability of the funds.

Republicans in Congress are also desperate to find cuts to pay for more border defense, Pentagon spending and tax cuts and proposed significant cuts to federal education spending as recently as 2023. 

School districts receive the majority of their funding from the state and local governments, but the federal government plays a large role in assisting K-12 schools in low-income communities through Title 1 funding. The EPI study found that in most cases, federal funds make up less than 20% of a district’s budget. But, many districts rely far more heavily on the federal government, particularly in southern states, where some districts receive 70% of their revenue from the feds.

Many northern Minnesota school districts in and around tribal nations receive significant federal funds, as they are low-income areas. Cass Lake-Bena Public Schools, Mahnomen Public School District and Waubun-Ogema-White Earth Schools received about 30% of their district revenue from the feds in fiscal year 2022, according to the EPI analysis.

St. Paul Public School District received $176 million from the federal government in the same year, which accounts for 21% of its total revenue. Minneapolis Public Schools received $145 million, about 19% of its total revenue.

School districts across Minnesota and in the Twin Cities metro are facing severe budget shortfalls and have drawn down reserves to fill the gaps. The end of one-time pandemic aid, inflation and declining enrollment are major contributors to school districts’ tight budgets.

A cut to federal funding, even those schools that receive about 10% of federal funds, would require districts to lay off teachers and staff and make other difficult budget decisions. Or, they will go to voters in their districts and ask them to approve a property tax hike.

In addition to Title 1, the feds provide money for the IDEA program for special education students.

The Trump administration has threatened to withhold billions of these federal dollars to states that don’t capitulate to its demand that they end the use of diversity programs in public schools. 

Title 1 funds have been withheld from school districts at least once in recent history — to incentivize districts to desegregate.