How Federal Funding Impacts Minnesotans
District Perspectives, Senate District 65
Until this January, I’d wager many Minnesotans didn’t spend much time thinking about the way our federal government moves money around. That’s what’s great about a government that works the way it’s meant to: only the people who are paid to think about it, have to think about it. But as we’ve seen since January 20, when the system starts to break down — or rather, is being actively destroyed — it becomes everyone’s problem. Problems like: Will I be able to feed my family this week if our WIC benefits are cancelled? Will I still be able to see my doctor if Medicaid funding is slashed? Will I have to quit my job to take care of my kids if Head Start shuts down?
All of these programs are ones that we rely on and pay for. Minnesotans pay in $32 billion a year in federal taxes, and the state receives $22 billion a year in federal loans and grants in return to fund daycares, health insurance, nutrition programs and more. For the most part, agencies and programs receive federal funds as reimbursements — that is, we spend the money, and the feds pay us back. Minnesota gets around $1.8 billion from the federal government every month, according to the Minnesota Star Tribune. In St. Paul, federal funds make up 20 to 30 percent of the city’s annual revenue — $27.6 million in 2024, MinnPost reported. As the Trump administration wreaks havoc through the US government, here’s what’s at risk for Minnesotans:
$16 billion of health care funding
The vast majority of the federal funding that flows into Minnesota — 72 percent — helps fund Medicaid, which provides health care coverage and services to more than 1 million Minnesotans who meet income and other eligibility requirements; and keeps hospitals and clinics operating across the state, providing critical health care for Minnesotan families.
Ten percent of Minnesota’s public education funds
The $1billion that Minnesota schools receive from the federal government — 10 percent of the statewide education budget — helps fund critical programs that help our students succeed: English language learner courses, after-school classes and summer school, tutoring for students who need a little more support in their education. Not to mention, the feds cover over half of the funding for school meals. In 2023, Minnesota upped our investment by passing Universal School Meals because no student should have to go to class hungry. If the federal government falls through on its commitment to feed kids across the US, Minnesota will shoulder the rest of the cost.
Programs for survivors of domestic violence.
On Feb. 10, I heard leaders of survivor support groups speak in the Senate Judiciary and Public Safety Committee about their organizations’ desperate need for federal support. Federal grants are one of the central funding sources for crime victim support services, like the St. Paul and Ramsey County Domestic Abuse Intervention Project. Just three weeks after the Trump administration came into office, programs have been thrown into chaos. Because of the callous federal cuts, survivor support programs are freezing hiring and wages, reducing benefits and losing staff. Services were already struggling: At one Minnesota domestic violence shelter, 78% of eligible clients are turned away because of a lack of available beds. These programs are desperately needed, and they were stretched too thin already before this federal storm began.
With a reckless driver at the wheel in Washington, DC, leaders across the state — legislators, city councils, counties, neighborhood groups — must step up to make sure Minnesota stays on the road. I encourage you to share your stories of how the Trump administration’s actions are affecting your life on the Senate DFL’s website, at the Capitol, with the City Council, the Ramsey County Board and with your neighbors. If we work together, we can survive this storm.
