News Summary
North Carolina Attorney General Jeff Jackson is spearheading a coalition of 25 states in a lawsuit to contest the Trump administration’s freeze on nearly $7 billion in federal education grants. The freeze, which halts vital funding for various educational programs, could cost North Carolina about $165 million, impacting thousands of students and teachers. District leaders are scrambling to address potential job losses and budget shortfalls while the lawsuit seeks to address the legality of the funding suspension.
Charlotte, North Carolina – North Carolina Attorney General Jeff Jackson is leading a coalition of 25 states in a lawsuit challenging the Trump administration’s recent decision to freeze federal education grants. This legal action addresses a nationwide funding freeze that has halted nearly $7 billion in federal support earmarked for schools across the country.
The lawsuit comes in the wake of the U.S. Department of Education’s move to pause the distribution of these critical grants on June 30, 2025, one day before they were due to be allocated to various school districts. North Carolina is projected to lose approximately $165 million as a direct result of this funding freeze, a situation that could have severe implications for educators and students statewide.
Jackson argues that the Department of Education lacks the authority to withhold these crucial funds, especially with such little notice. The funding in question was previously authorized by Congress and is essential for supporting educational initiatives across North Carolina.
Impact of the Funding Freeze
The $165 million set aside for North Carolina includes significant allocations for various educational programs. These funds are designed for:
- Education of Migratory Children – $5.4 million
- Supporting Effective Instruction – $67.9 million
- English Language Acquisition – $19.3 million
- Student Support and Academic Enrichment – $37.2 million
- 21st Century Community Learning Centers – $35.7 million
According to education advocates, like those from the North Carolina Association of Educators, the withholding of this funding will have a profound negative impact on both teachers and students. Nearly 1,000 teachers may face job losses as local school districts grapple with the fiscal repercussions of the funding freeze.
Rural schools, in particular, are expected to bear the brunt of this funding cut as they often rely heavily on federal support to sustain their educational programs. Charlotte-Mecklenburg Schools (CMS) is anticipated to suffer the largest single cut in North Carolina, with projected losses of $12 million. Similarly, Catawba County Schools could see nearly $1 million vanish from its budget, which would hinder essential initiatives such as instructional coaching and teacher recruitment efforts.
District Responses
District leaders across North Carolina are actively developing contingency plans to address the shortfall resulting from the funding freeze. The Charlotte-Mecklenburg School board has expressed particular concern about the implications for over 141,000 students who depend on federal funding for educational support programs.
The funding freeze has also significantly impacted South Carolina, where school districts are expected to collectively lose around $90 million. CMS received notification of the funding freeze from the North Carolina Department of Public Instruction on July 3, 2025, which has raised alarms about the potential financial strain on schools.
Options for Charlotte-Mecklenburg Schools
With the current fiscal uncertainty, CMS faces two challenging options: either understaff classrooms or incur significant debt — approximately $1 million each month — to maintain operations. The Charlotte-Mecklenburg Board of Education has formally requested an immediate release of the withheld funds from the U.S. Department of Education, highlighting that the funding freeze jeopardizes the effective management of federal, state, and local financial resources.
Ongoing Legal Battle
The lawsuit against the Trump administration represents a coordinated effort by multiple states to challenge the legality of the funding freeze and its implications for public education. As the legal proceedings unfold, the situation remains fluid with uncertain timelines regarding when or if the frozen funds will be released. The outcome of this lawsuit could have enduring effects on educational funding policies moving forward.
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Additional Resources
- WCNC: North Carolina Education Grant Freeze Lawsuit
- QC News: $12M in Limbo for CMS
- Charlotte Observer: Education Funding Freeze Article
- Spectrum Local News: NC and Other States Sue Over Education Funds
- Charlotte Observer: Opinion on Education Funding Freeze
- Wikipedia: Federal Education Funding in the United States
- Google Search: North Carolina education grant freeze
- Google Scholar: North Carolina education funding lawsuit
- Encyclopedia Britannica: Education in the United States
- Google News: North Carolina education funding
Author: HERE Charlotte
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