The Department of Education (DOE) has yet to release over $6 billion in federal grants that were expected to be distributed on July 1, which help source professional development, English-learning students, after-school programs and other services.

While local districts see most of its funding from the state and local level, there may still be some impact if the funds are not released.

The DOE has not released funds due to reviewing Trump Administration policies.

A day before funds were expected to be distributed, the DOE sent out a notice to state education officials that was obtained by the Associated Press.

“The Department remains committed to ensuring taxpayer resources are spent in accordance with the president’s priorities and the Department’s statutory responsibilities,” and “decisions have not yet been made,” according to The Associated Press.

The funds have traditionally been released on July 1 as schools continue to plan and budget the upcoming school year. The delay offers new uncertainty for school districts on when, or if, they will be receiving the funds.

The specific programs being reviewed are Title I-C, Title II-A, Title III-A, Title IV-A and Title IV-B. According to a letter submitted to the DOE by Minnesota Department of Education Commissioner Willie Jett, the programs in question represent investments for students of mobile farm and fishing families with access to coursework, support of professional development for teachers and other staff, summer and after-school programs, and support for English-learner students.

Jett wrote a letter to the DOE on June 26, expressing concern about the possibility of a funding delay due to a lack of confirmation on details ahead of time.

“Title programs authorized by Congress through the Elementary and Secondary Education Act (ESEA) are a critical part of how districts and charter schools across Minnesota structure and provide high-quality education to more than 870,000 students across our state,” Jett wrote. “At this writing, Minnesota has not received critical information for school districts to obligate federal funding in time for a July 1 deadline.”

While the funds are still being considered for release, local districts may have to re-budget if the money is not distributed.

“We are concerned about the delay with other Title programs,” Marshall Superintendent Jeremy Williams told the Independent. “We had anticipated receiving nearly $100,000 in federal funds for those programs that (are) in limbo.”

Williams mentioned that Marshall’s biggest Title program is Title I – Part A, which funding has been released for. Those investments support elementary students with reading skills.

“We are already facing a budget deficit of nearly $1.8 million this year,” Williams said, with Marshall currently pursuing a voter-led operating referendum for a November election. “Any reduction in funding will impact programming and supports for our students, in this case for our students most at need.”

Minneota Superintendent Scott Monson said the Minneota School District doesn’t usually receive a significant amount of federal funding from the programs in review.

“However, what these funding uncertainties do is to make us even more concerned about other federal funding sources; Ones that are more prevalent in our district, and if they will eventually be decreased or withheld,” Monson said. “Any funding delay or withholding, no matter how small the amount, is concerning, and we are always looking at how funding impacts students.”

Lakeview is another district that is anticipating funds that may have to make budget adjustments if not released.

“For Lakeview, based on our revenue projections, we were due to receive $10,169 for Title II-A and $10,000 for Title IV-A,” Lakeview Superintendent Chris Fenske said. “Our Title II funding is used for teacher professional development around literacy. This funding is significant with the new READ Act in Minnesota. Our Title IV-A funding is used to help pay for a shared school social worker position with the Minneota School District.”

Fenske also detailed that Lakeview is a part of the Title III collaborative with the Minnesota River Valley Education District in Montevideo, which helps with funding for their English-learning services.

“With the funding delays, it essentially means that we will have to cash flow these expenses from our budget and/or reserves until the funding is released,” Fenske said. “Schools plan their budgets for 2025-26 months in advance, so the timing of this delay is not ideal, as staffing decisions were made months ago, and student services are affected by these programs. We are hoping this will be resolved soon.”

According to Education Minnesota, the state’s teacher union, Minnesota school districts collectively receive about $67 million in the affected Title programs.

“For decades, federal education investments have played a key role in ensuring students learn and thrive. They provide critical resources for low-income students in both urban and rural Minnesota, career and technical education, adult basic education, and teacher training,” Jetts also wrote in his letter to the DOE. “Schools, charter schools, community-based organizations, and participating nonpublic schools are now being forced to make decisions about staffing, programming, and services without knowing whether the funds Congress appropriated will be made available on time. This uncertainty risks disrupting essential programs and undermines the supports our students and schools rely on every day.”