The budget proposal would allow school districts to share whole grade levels in an attempt to save money and increase resources at schools.
A budget amendment will provide funds to develop a teacher incentive program in rural areas.
The bill would provide funding for a three-year grant program to help rural schools develop a plan to share services and cut costs.
The program will provide books and resources to 20,000 rural children in four states.
The bill would consider additional factors to make it easier for out-of-state teachers to earn a Minnesota teaching license.
Tribal schools in Minnesota receive about $5,000 per student in federal funds, which is half of the per-pupil amount that the state provides to other school districts.
Some rural districts could lose more than 50 percent of Title I funding.
The study will examine the experiences of Native American students that impact interest in STEM fields.
The project aims to build capacity among rural educators and communities to boost early-literacy skills.
About half of rural school districts do not have students enrolled in Advanced Placement courses.