Federal funding freezes mark next Sioux Falls School District budget

New leadership takes helm amid uncertain times in state and federal aid

The Sioux Falls School District enters the 2025-26 school year with a $342.8 million tax-supported budget, facing a major funding crisis, and a new slate of board leadership.

Federal education grants that once supported everything from teacher training to after-school care have been frozen by the U.S. Department of Education, putting more than $3 million in potential funding at risk for the upcoming school year. District leaders say the freeze impacts critical grants under the Every Student Succeeds Act — including Title II and Title IV — that cover professional development, instructional coaches, and programs that serve hundreds of students and families.

With the loss of federal COVID relief dollars and state funding increases that lag behind inflation, district leaders warn that tough choices are unavoidable. The new budget requires cuts and may impact staffing and student programs, while a new board president, new members, and a recently appointed superintendent take the helm. Leaders warn that next year’s budgeting will be even more difficult.