Title I is a federal program that gives money to school districts for disadvantaged students.
Court documents state Ruettgers reported Nampa schools were out of compliance with state requirements and federal guidelines because funds were being improperly allocated.
The documents say she started emailing the district about her concerns in August 2012.
She says she was terminated for insubordination a few months later on December 7th.
The lawsuit actually uses the word fraud to describe the conduct of some Nampa School District officials.
In one example, court documents claim Title I paraprofessionals, who are not necessarily teachers, worked as substitute teachers in classrooms rather then with Title I students as they were funded to do.
The lawsuit says as a result of compliance concerns brought up by Ruettgers, the Department of Education withheld some five million dollars from the school district.
The lawsuit seeks a settlement of $10,000, but an attorney for Ruettgers says to expect a larger settlement request as the case proceeds.