Minnesota 2025 K-12 Education Finance Law Sets New Funding Levels for 2026-27 Biennium

Minnesota's 2025 K-12 Education Finance and Policy law increased funding by $4.2 million for the 2026-27 biennium, totaling $25.73 billion. The basic funding formula is now tied to inflation with a 2-3% annual range starting in 2026. Minneapolis residents will see these changes alongside district-level pressures from persistent budget deficits and enrollment challenges five years after the 2020 equity overhaul.

State requirements also shift starting with the 2026-27 school year. All Minnesota districts and charter schools must provide mental health instruction for students in grades 4-12. The READ Act deadline for evidence-based literacy interventions was extended to the 2026-2027 school year. A separate 2024 state law requires districts to adopt cell phone policies by March 15, 2025, while the 2023 non-exclusionary discipline law requires exhausting non-punitive practices before suspensions.

Local Budget Pressures in Minneapolis

Minneapolis district leaders are confronting these state changes while managing their own deficits and enrollment trends. Hard decisions about closing or merging schools are now expected. Such steps could alter transportation needs or after-school arrangements for families, directly touching household budgets through changed daily logistics.

Targeted Funding Increases for Specific Student Needs

The state raised special education cross-subsidy coverage to 44% for 2024-2026, scheduled to reach 50% in 2027. English language learner funding per student rose from $704 to $1,775 by 2027. For Minneapolis households with children receiving these services, the adjustments may change the share of costs covered at the state level rather than through local resources.

These measures take effect over the coming school years. Minneapolis families can review district plans for school configurations and program delivery as implementation details are finalized. The combination of statewide funding formulas and local enrollment patterns will shape how resources reach individual schools and students.