Schools on indigenous reservations in Montana face uncertainty due to delayed federal funding and layoffs at the U.S. Department of Education. These schools depend on Impact Aid funds, which are currently on hold, impacting their ability to pay staff and maintain operations.
MONTANA - Schools on indigenous reservations in Montana are facing uncertainty due to significant layoffs at the U.S. Department of Education. These schools rely heavily on federal funding, which has been delayed.
The Department of Education plans to cut half of its federal employees. This decision could significantly impact Indigenous school districts that depend on millions of dollars in Impact Aid funds. These funds help schools compensate for money lost by residents within the district not living on taxable property.
Dozens of schools across the state receive Impact Aid including Arlee School District who receives $1.8 million annually in funding.
St. Ignatius School district receives Impact Aid funding as 50% of its students live on untaxed property.
Currently, indigenous Montana school districts have only received half of their Impact Aid funding which was sent in December 2024. The remaining funds for this fiscal year are on hold due to the Impact Aid being on a continuing resolution until the federal budget is confirmed.
"We're kind of up in the air for payments regarding the rest of this year. And then where impacted payments will be processed and where they'll come from in the future," said Adam Hawkaluk, Business Manager of the St. Ignatius School District.
The federal layoffs have further complicated the situation. It is unclear if the 19 employees responsible for processing Impact Aid applications will remain with the department. The Impact Aid responsibilities could be transferred to a different department. This uncertainty could lead to longer delays in schools receiving their federal funding. The funding is critical to paying staff and maintaining operation costs.
"Teacher salaries, electricity payments, any maintenance projects for us would probably be put on hold at this time right now," Hawkaluk stated.
Montana's Office of Public of Instruction sent Nonstop Local a statement about the Department of Education Layoffs.
"We understand that there has been a lot of misinformation and fear being spread by those opposed to the Trump administration’s approach to education reform. We want to reassure you that we are in contact with the Department of Education, as well as our Congressional delegation to continue monitoring changes that are occurring.
We are aware of the layoffs happening at the U.S. Department of Education and are actively monitoring this developing situation, we do not currently have any additional details. Both the President and the Secretary have stated their commitment to shifting education decision-making and funding back to the state level. The Montana Office of Public Instruction (OPI) stands ready as this transition begins.
At this time, we have not received any indication that there would be funding cuts to the Title Programs, IDEA (special ed) or Carl Perkins (CTE).
We will continue to closely follow these developments and will provide updates as we learn more. Our priority remains ensuring Montana students, families, and schools receive the resources and support they need."
The U.S. Senate will be confirming the federal budget on March 14.
