The Minnesota House passed House File 2433, a K‑12 education finance bill, by a 93‑41 roll call after extended debate over funding priorities, literacy policy and a provision that would end unemployment insurance eligibility for hourly school workers after the summer of 2028.

Rep. Joakim, sponsor of the bill, told the chamber the measure "reflects a compromise" intended to fund schools while protecting core programs. He said the bill includes a $40,000,000 allocation for the REED Act in the first biennium and keeps the general education formula linked to inflation.

The bill would create a basic supplemental aid (BSA) option to give districts more flexibility over certain earmarked funds, reallocate some library and other funds into broader-use buckets, slow growth in school support personnel aid (SSPA), and capture about $2,000,000 of Minnesota Department of Education (MDE) dollars that otherwise would have reverted to the general fund. It also includes a compensatory revenue task force to review the compensatory formula used to target dollars to students who need additional support.

The bill drew strong opposition from members who said a repeal of the temporary unemployment insurance (UI) eligibility for hourly school workers would strip a vital safety net from paraeducators, bus drivers, food-service staff and other hourly employees. "I rise today to oppose this bill because it repeals the essential lifeline for Minnesota's most vulnerable workers," Rep. Greenman said on the floor.

Several members described personal and district-level impacts if UI eligibility is removed. Rep. Feist called the compensatory task force "a much needed start" to fix distortions in the formula that have produced sudden funding cliffs for some districts. Rep. Hansen cited South Saint Paul as an example and said the district faces roughly $1.5 million in compensatory aid losses under the current formula, an amount he said would mean about $517 per student.

On literacy policy, Rep. Mueller described changes in the bill to the REED Act, including clearer definitions and rubrics tied to the "science of reading," added professional development options for teachers, and a provision to end the state's relationship with an outside contractor (Carey) in favor of returning funds to districts. Mueller pointed to Monroe Elementary School as an example where adoption of science-of-reading curriculum corresponded with improved reading proficiency in district assessments.

Other technical changes discussed on the floor included a reduction in the special education transportation reimbursement rate, adjustments to several legislatively appointed grant lines (some moved out of the budget 'tails' or cut in second-year funding), funding for long‑term facilities maintenance, consolidation transition aid, and funds for Math Corps and the Minnesota Youth Council.

Supporters framed the bill as needed flexibility for districts facing rising costs: "Indexing the formula to inflation provides stability and predictability," Rep. Clardy said. Sponsors also emphasized anti‑fraud and oversight language for nonprofit vendors and preserved base funding for certain state academies and MDE litigation costs, though some operating adjustments were below request levels.

Despite repeated floor appeals to preserve UI eligibility, sponsors said the bill reflects the fiscal constraints set by leadership and the need to prioritize funding flexibility. Rep. Kreisha, co‑chair of the committee, acknowledged disagreement over the UI repeal but said the package represents the most that could be achieved given the state budget targets and forecast.

Votes at a glance: House File 2433 (K‑12 education finance) — Passed, yes 93, no 41 (final roll call taken by the chief clerk). The bill now moves to conference committee and further negotiation with the Senate.

Provenance: discussion and votes recorded during the House third reading and final passage proceedings; debate on UI, compensatory aid, REED/Read Act and indexing occurred throughout the third‑reading debate and were cited by multiple speakers.