Yesterday, May 15, 2025 legislative leaders and Governor Walz announced the high level details of a global budget deal. The 2025 regular legislative session is set to adjourn on May 19, 2025 but a special session will likely follow to wrap up a few major budget bills, including the E-12 budget bill. The plan will keep E-12 funding at its forecasted levels for FY 26-27, but reduces E-12 spending by $420M in the “tails” budget or FY 28-29.

The tails reduction will likely result from reductions in either or both the forecasted increases on the basic formula or in special education cross-subsidy aid. GOP leaders said there won’t be cuts to nonpublic school aids, and DFL leaders said a plan to sunset Unemployment Insurance benefits won’t be a part of the final bill. These and all other E-12 changes will be hammered out over this coming weekend and into early next week.