Minnesota schools rush toward levies as $6.8 billion in US funding remains frozen

Minnesota’s public schools are bracing for a financial crisis after the Trump administration announced a freeze on nearly $6.8 billion in federal education funding. As districts across the state face immediate budget shortfalls, many are turning to local levies as a last-resort solution to fill the growing gap.According to the Minnesota Department of Education (MDE), the state stands to lose $74 million in federal K–12 funding. The withheld funds were previously approved by Congress and were expected to be distributed on July 1. However, the US Department of Education sent a brief notification—through a no-reply email—stating that grant awards for several programs are under review due to the change in administrations.Funding earmarked for critical programs now in limboMost of the frozen funds were designated for essential educational programs, including support for English learners, teacher development, adult literacy, and summer learning. Without this money, schools are scrambling to identify other revenue sources, as reported by KARE 11.In response to the unexpected freeze, many districts are considering levies to stabilize their finances.

Sources told KARE 11 that three times as many Minnesota districts as usual are now exploring this option. Among them is the state's largest district, Anoka-Hennepin, which is facing a $13 million budget shortfall and could lose $1.6 million due to the federal freeze.Parents and leaders push for urgent actionIn the Prior Lake-Savage Area Schools, parent advocate Dawn Lenio emphasized the urgency of placing a levy on the November ballot.

“I think it would be really important to get a levy on the ballot as soon as this November, especially with funding from the federal level potentially being at risk,” she told KARE 11.Lenio, who has two children in the district and previously led a failed levy campaign, criticized the current school board for not taking quicker action. “Our current school board, it feels like they’re more focused on policy than actually helping to do the work the district needs them to do to get our budget under control,” she said, as quoted by KARE 11.The district is now facing a $4 million deficit, and the superintendent has presented a detailed timeline for the board to consider a levy. But the window is tight: the board must decide by the end of the month.Districts voice concern over federal silenceAnoka-Hennepin’s newly appointed teacher union president, John Wolhaupter, told KARE 11 that while levies have been discussed, “Right now that’s not something that’s been on the table.”

He added that the core issue is the state’s failure to meet its education funding responsibilities.

In a written statement to KARE 11, Anoka-Hennepin Superintendent Cory McIntyre called the freeze “an unfortunate situation” and said it would impact critical academic and behavioral support services. The US Department of Education has not responded to further requests for comment.