The department has concerns that the district has inflated the number of students who qualify for federal meal assistance and has not properly overseen federal grant programs. Much of the federal funding that school districts get is based on the number of poor students who qualify for federal meal assistance.
School district officials did not respond to requests for comment.
The district stands to lose about $10 million through the frozen funds. That would be significant for the district, which lists an operating budget of $114.8 million on its website. The district could still get the money if it clears up concerns.