Committee hears how federal dollars flow into Minnesota schools and the risks of federal disruption

Department of Education officials told the Minnesota State Education Finance Committee that federal sources provide roughly 10 percent of the dollars spent on K–12 education in Minnesota and outlined how those funds reach local districts and charter schools.

"Our federal funds make up 10% of our state's education budget," said the committee chair, adding that the figure is concentrated in specific programs such as Title I, special education and school nutrition. Assistant directors and commissioners from the Department of Education walked committee members through entitlement (formula) funding and discretionary (competitive) grants, reimbursement processes and emergency ESSER awards that followed the COVID-19 pandemic.

The presentation emphasized how most federal programs operate on a cost-reimbursement basis: local education agencies pay eligible costs, submit…