SIOUX FALLS, S.D. (KELO) — Federal money that public school districts expected is still in Washington, D.C. Now, schools around the nation, including South Dakota, are considering ways to offset the potential loss of money for 2025-2026 and beyond.
“The frustrating part of this is that Congress has already allocated the money in the budget,” said Yankton School District Superintendent Dr. Wayne Kindle.
“There is no reason to not get that funding,” Kindle said. “They owe to our kids, they owe to our families, they owe it to our schools.”
“I don’t understand that if the funds are there, why don’t they allocate it and distribute them,” said Watertown School District Superintendent Dr. Jeff Danielsen said. The funds are not part of the federal cuts, so they should be distributed so they can assure schools of funding for this year, he said.
A dispute between the President Donald Trump Administration’s Office of Management and Budget and the U.S. Department of Education has resulted in the money being stalled in D.C., Kindle said.
Ultimately, the U.S. Department of Education has done its part but the OMB hasn’t released the money, Kindle said.
Danielsen said the hold-up appears to be part of the “long-term effort reduce federal spending…”
The hold-up could mean a potential loss of around $2 million, Kindle said.
One example of the impact of that potential loss is $600,000 that can fund six Title I teachers, Kindle said.
“That impacts 300 K-5 students,” Kindle said.
The federal government has indicated it will receive similar funding to the prior year for certain programs and that’s money that has not been received yet in Watertown, Danielsen said.
“Our biggest concern right now is Title II Part A funding,” Danielsen said. The $230,000 for this program in the district is listed at zero.
If the district doesn’t receive the funding, it will need to use money from the general fund, Danielsen said.
The held-up money “is used for what is probably our most vulnerable student population. That’s the troubling piece of this holdup,” Danielsen said.
Title I is geared toward supporting students to ensure an equitable education, that includes those of low-income families. Title II Part A is programs to improve teaching and student performance.
The other troubling piece of the hold-up is that South Dakota law requires school districts to offer tenured teachers contracts by September.
“We did that,” Kindle said.
If the Yankton district doesn’t get the roughly $2 million in federal money, it doesn’t plan on cutting teachers for the 2025-2026 school year, he said.
“We will honor those contracts,” Kindle said. “But we can’t continue…” If the money is not received, Yankton will likely be looking at cuts for the 2026-2027 school year.
The $230,000 funding at zero is tied to three positions in Watertown, Danielsen said. The district will not cut those positions for the 2025-2026 school year, he said.
“There are other schools that are quite possibly need to make immediate cuts,” Kindle said.
“I want the pubic to know that we will continue to serve the students the best we can,” Danielsen said. “In the short run, we want to keep all the programs in place.”
Beyond that if federal funding isn’t available in the future, the school district will have to weigh certain programs and available money, he said.
Another hold-up for money is that funds allocated in the 21st Century programs which help pay for summer and after school programs, Kindle said.
The Boys and Girls Club in Watertown receives the 21st Century grant money to pay for after school programs in a partnership with the district, Danielsen said. “We are very concerned that those funds are being held up,” he said.
If the partner club loses federal funding, the school district would be looked at to help, he said.
Kindle, along with four other superintendents from the state, advocated for the approved money in Washington, D.C. last week. They met with the offices of Sen. Mike Rounds and Rep. Dusty Johnson and in person with Sen. John Thune.
The D.C. officials understood the gravity of the situation and promised to help get the money delivered to school districts, Kindle said.
“I’m going to trust them,” Kindle said. “I’m going to put my trust in them.”
They gave their word and in South Dakota, when someone gives their word, they make good on it, Kindle said.
Still, Kindle said it’s important for parents and those who support school districts to contact the D.C. delegation about the importance of releasing the money.
“…I think they need to be reminded this needs to be done,” Kindle said.
In the case of the 21st Century money, schools have almost completed summer programs, he said.
And the 2025-2026 school year starts in August.
