Deep Money Donors, Union Power & Walz’s $109M Private School Aid Cuts

What’s Really Driving Minnesota’s Education Shake-Up?

Last year, 70,000 of Minnesota's nonpublic school students felt the impact of Governor Walz's proposals to cut $109 million in aid. Governor Walz insisted he was "pretty firm" on eliminating aid to private schools. As the 2026 legislative session convenes in February, Minnesotans must remain vigilant against these orchestrated efforts that threaten to drain resources from private school funding. If reducing private school aid serves as a conduit for shifting students into public schools, benefiting a consortium of unions and allied organizations, should both Democratic and Republican legislators view this with concern?

Private school students from across Minnesota gathered at the State Capitol during the 2025 session to deliver a clear message: do not cut $109 million in private school aid. The footage shows hundreds of children and their families marching to Governor Walz’s office—only to find the governor absent. These students came to personally ask for their educational choices to be protected, highlighting the real human impact behind the budget debate.

The Budget Cut Debate

State data shows Minnesota public schools lost 12,500 students between 2021 and 2024, resulting in a 15% rise in private and homeschool enrollment. Many families claim the shift in enrollment was based on objections to what we call today DEI-focused curricula. While proponents argue the shift would redirect resources to districts serving 80% of Minnesota's children, critics have noted that the cut from Minnesota's budget represents less than 0.5% of the K-12 budget of $24.3 billion. If funding is cut, this systematic plan would only penalize parents and caretakers who opted out of the DEI experiment. With 70,000 students at stake, lawmakers reconvening in February must remain cognizant of the implications: depriving students of educational diversity and funneling more students into Minnesota's public system. Could this grander stratagem—effectively incentivizing public schools by starving private schools of funding—be the true motive? Investigating the rationale behind targeting such a small portion of aid suggests a coordinated effort by the Democracy Alliance and allied unions to support Governor Walz's push to defund private schools.

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70,000

Nonpublic students affected

12,500

Public school students lost

15%

Rise in private/homeschool enrollment

$109 M

Proposed private aid cut

0.45%

Aid cut % of K–12 budget

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Unions represent one arm of the Democracy Alliance’s broader strategy. An edifice of influence aiming to reshape state and national policy, and government parties one legislature at a time. Fueled by resources and strategic support funneled through their allegiance to the Democracy Alliance, these unions serve as a visible source driving Governor Walz’s budget priorities.

Next Up: Inside the Unions’ Playbook

In next week’s installment, we’ll unpack Education Minnesota and its AFT/NEA affiliates. Examine how union leadership, based by the Democracy Alliance’s deep resources, crafts the legislative and grassroots efforts that drive Governor Walz’s push to redirect school funding.