New Ulm School district one of hundreds waiting and wondering how cuts to the Department of Education will impact federal revenue streams to the school.

NEW ULM – As the U.S. Department of Education (DOE) is facing substantial cuts, local school districts are left in a holding pattern over what it will mean for their budgets.

DOE recently announced the laying off of 1,300 employees as part of President Donald Trump’s goal of downsizing the federal government. The Trump administration’s long-term goal is to eliminate the agency entirely.

Recently appointed Education Secretary Linda McMahon stated in a March 3 memo the goal was to eliminate bureaucratic bloat and turn over the agency’s authority to the states. However, the DOE is currently responsible for programming that provides funding to school districts across the country. Many districts including New Ulm and Sleepy Eye depend on these funding sources and it is not clear if downsizing will impact local schools.

Currently, most schools receive federal funding through Title I and the Individuals with Disabilities Education Act (IDEA). The Title I program was created as part of the Secondary Education Act. The program provides financial assistance to school districts for children from low-income families. IDEA provides funding for districts with eligible children with disabilities and ensures special education and related services to those children, supports early intervention services for infants and toddlers and their families, and awards competitive discretionary grants.

New Ulm superintendent Sean Koester and Sleepy Eye superintendent John Cselovszki acknowledged they were uncertain how the cuts to DOE impacted these revenue sources, but both acknowledge the loss of federal funding would hurt the schools.

“Losing federal funds would devastate public schools,” Cselovszki said. Sleepy Eye schools currently receive federal Title I funds, special education funds through the Individuals with Disabilities Education Act (IDEA) and reimbursement for student meals.

Cselovszki said the majority of Sleepy Eye school funds come from state and local funding, but federal support was still necessary. He estimated the school received over $300,000 in federal money. He said if the school were to lose the funding, the situation would be dire.

In New Ulm schools, Superintendent Koester reported similar information.

“In our district, Title I funding is just over $413,000 out of a $35 million budget,” Koester said. “While this may seem like a small percentage, it plays a crucial role in supporting students who need additional academic assistance. Any reduction or restructuring of Title I and IDEA funding would lead to substantial budget shortfalls for schools around the state.”

Currently, federal funding for Title I and IDEA has not been impacted by the cuts. DOE officials will continue to distribute federal aid to schools for the time being, but it is not clear what agency will take over the distribution of these revenue streams if the DOE is dismantled by Trump executive orders.

What is clear is Title I and IDEA funding cannot be eliminated without an act of Congress.

“It’s crucial to understand that ending funding streams like Title I, which supports low-income schools, and IDEA, which ensures resources for students with disabilities, requires an act of Congress,” Koester said. “These programs are mandated by law, and can not be eliminated through executive action alone. However, there is a possibility that by eliminating programs that support how these funding streams are disbursed, impacts could be felt in education from executive orders.”

On Feb. 5, Minnesota Education Commissioner Willie Jett sent a letter to then-acting U.S. Education Secretary Denise Carter requesting clarity on transitioning the federal programs but has yet to receive an answer.

The Journal reached out to Minnesota Department of Education (MDE) to ask if it would be taking on a greater role in administering the programs. In response, MDE said “[MDE] stands ready to be a partner in supporting families and schools, but this lack of clarity puts students at risk by disrupting longstanding protections and programs students in Minnesota depend on every day.”

On Wednesday, Minnesota Gov. Tim Walz and Commissioner Jett held a press conference at an elementary school in Fridley to comment on the impact of the cuts to the DOE.

“Dismantling the DOE has nothing to do with improving outcomes for our kids, it’s simply about taking away resources for public schools. As a former teacher, I know that President Trump’s dismantling of the U.S. Department of Education will do damage to our schools that will impact our kids for years to come,” said Governor Walz.

Jett called for stability in education.

“Kids need stability,” said Education Commissioner Willie Jett. “These actions will have the biggest consequences in our rural communities, on students from low-income families, and on those needing special education services. The Minnesota Department of Education is still here, and we will continue to work hard to ensure every student, regardless of their background or circumstance, has access to a quality education.”