The F-B-I says it is investigating a former education service worker in Turtle Lake in Barron County.
The woman allegedly embezzled thousands of dollars from the Cooperative Educational Service Agency.
The woman resigned after the agency learned about the scheme this fall.
Most of the money was apparently taken in the last five years from the TEACH program, which gives funding to Wisconsin schools for updating technology.
The head of the agency's Turtle Lake office, Bob Rykal says the final amount will be in the six-figures. The suspect's name has not been released.
Barron County sheriff's deputies are also investigating.
The agency is one of 12 throughout the state that provide administrative and specialized services to school districts around Wisconsin.