Up to $1.6 million lost: North Dakota's new funding formula reshapes US Title I distribution
North Dakota has implemented a new method for distributing federal Title I education funds, affecting public K–12 schools across the state. The changes align the state's funding approach with that used in 43 other US states, shifting the basis of allocation from local school meal programme data to federal census poverty data.
This adjustment is causing significant financial gains for some districts and steep losses for others, with disparities reaching into the millions. The Title I programme, a key element of the US federal education support system, is intended to assist schools serving high numbers of low-income students.
Distribution shift based on census poverty data
The North Dakota Department of Public Instruction (DPI) has replaced its longstanding formula for allocating Title I funds.
Previously, districts received money based on internal data, primarily the number of students receiving free or reduced-price meals. Now, funding is determined by the number of low-income students residing within district boundaries according to census poverty data.
Under the new model, funds no longer follow students who open-enrol in schools outside their home districts. The DPI stated the change would create greater consistency and reduce administrative workload.
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This shift has had a varied impact across the state's districts, particularly affecting rural and tribal schools.
Belcourt School District sees sharp reduction
The Belcourt School District, which serves a significant Indigenous student population, is projected to lose approximately $1.6 million in Title I funds. This reflects a 45% decrease from the $3.5 million it received for the 2024–25 academic year. According to the Inforum, local officials raised concerns that the census data may not accurately reflect true poverty levels, citing high unemployment and potential undercounting during the census process.
Minnewaukan's funding to fall by over 85%
Minnewaukan Public Schools is also experiencing a drastic funding reduction. The district's allocation is expected to fall from $565,000 to $80,000, a decrease of more than 85%. According to the Inforum, the loss affects funding for early childhood care, additional paraprofessionals, and support services such as social work.
Impact of new Title I funding formula on selected districts
School District
Previous Title I Funding
New Title I Funding
Percentage Change
Belcourt
$3,500,000
$1,900,000
-45%
Minnewaukan
$565,000
$80,000
-85%
Fort Totten
$600,000 (approx.)
$1,200,000
100%
Fort Totten among the districts to gain
In contrast, the Fort Totten School District is set to see its Title I funding more than double to nearly $1.2 million.
Although Title I funds cannot be directly transferred between districts, they can be used for collaborative services. The DPI noted that shared resources, such as staff training, can be accessed by educators across district lines.
Consultations and public feedback
The DPI initially attempted to introduce the funding formula in 2023 but delayed implementation after mixed feedback during the public consultation period.
While some districts supported the model due to expected increases, others opposed it over concerns of reduced resources. As reported by the Inforum, the DPI stated it did not receive sufficient public demand for an alternative model to delay or change the approach further.
Tribal authorities were consulted during the transition process, and the DPI stated that the changes impacted tribal schools in proportions similar to other districts, as noted by the Inforum.
Ongoing concerns over school choice and equity
The change arrives amid broader national debates on school choice in the US. Although North Dakota's legislature did not pass related laws during its recent session, the DPI clarified the Title I funding change was not connected to those discussions. Nonetheless, district officials from affected areas, especially those with high numbers of open-enrolled students, have raised concerns about potential long-term impacts on equity, according to the Inforum.
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