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Millions of dollars in education funding for Minnesota schools remain in limbo ahead of school year

MINNESOTA, JUL 24 – Minnesota schools face delays in $61 million federal grants affecting teacher development and after-school programs as the U.S. Department of Education reviews fund usage compliance.

  • On July 31, the U.S. Department of Education announced withholding $61 million of federal education funds allocated to Minnesota ahead of the school year start.
  • The funds were withheld due to a federal review ensuring money aligns with President Trump's priorities despite Congress approving the $6.8 billion in 2024.
  • This disruption affects 510 Minnesota schools, including Rochester and Willmar Public Schools, with some grants already partially released totaling $13 million by July 21.
  • St. Paul Public Schools reported a $7.2 million funding freeze, about 1% of its budget, while Minneapolis Public Schools estimated losses near $4.5 million, yet expressed hope for release.
  • The ongoing withholding prompted a lawsuit from Minnesota and 23 other states against the Department of Education, highlighting uncertainty risks to programs and legal violations by the Trump administration.
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Duluth News TribuneDuluth News Tribune
+15 Reposted by 15 other sources
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Millions of dollars in education funding for Minnesota schools remain in limbo ahead of school year

ST. PAUL — The U.S. Department of Education released $13 million of a total of $74 million in disrupted education grants to Minnesota on Monday, July 21, according to the Minnesota Department of Education. A spokesperson with the MDE said Wednesday that MDE “remains concerned” about $61 million in federal education grants ahead of the school year’s start. The funds currently withheld in Minnesota — which Congress has already appropriated — inclu…

·Cherokee County, United States
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The Herald Democrat broke the news in on Wednesday, July 23, 2025.
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