NC Public Education Funding of $165M Restored After AG Jackson's Legal Action

Raleigh -- August 6, 2025: Over $165 million in federal school funds that had been unexpectedly halted has been successfully restored, according to Attorney General Jeff Jackson.

After North Carolina, 24 other states, and the District of Columbia sued the U.S. Department of Education,  money was ordered returned.

 On July 14, 2025, the lawsuit was filed, contesting the federal government's decision to withhold almost $6.8 billion in nationally authorized education grants.  Much of funding would be lost in North Carolina, which would affect important programs for migrant children, effective education, after-school programs, English language learners, and teacher development.

 The funding embargo threatened to upset carefully crafted budgets and might have negative effects on the state's 1.5 million public school kids, state officials said.  Class size hikes and the potential layoff of around 1,000 teachers raised concerns, especially in rural schools that mainly depend on federal funding.

 Without holding back, Attorney General Jackson criticized the federal government's conduct, claiming that the withholding of funds—which Congress had already approved in March—was against established legal procedures and the separation of powers.  According to the lawsuit, the delay hindered schools' ability to properly prepare for the forthcoming academic year and caused needless uncertainty.

 The multi-state lawsuit's push seems to have produced immediate results.  The U.S. Department of Education changed its position and declared the immediate release of all frozen monies, including the vital $165 million designated for North Carolina's public education system, just days after the lawsuit was filed.

Jackson said in a press release:  “National reports indicate that the U.S. Department of Education has backed down and is releasing all frozen funds — $6.8 billion nationwide, including $165 million for North Carolina — after we filed suit last week. This should end weeks of uncertainty — our schools can now plan, hire, and prepare for a strong year ahead. My absolute best wishes to our state’s 1.5 million students who are ready to make this their best year yet.”

Maurice "Mo" Green, the state superintendent of public instruction, likewise praised the improvement and expressed optimism for a more secure future collaboration with the federal government.  "It is good to see the federal government honor its commitment to our students, our educators, and our schools. I hope this resolution and the release of funds next week marks a return to the predictable, reliable federal partnership that our schools need to serve students effectively.”

 It's crucial to remember that this case is separate from the ongoing "Leandro" case, which deals with the state's constitutional duties regarding education funding equity in North Carolina, even though this resolution offers immediate relief and permits the state's schools to proceed with their plans.  Attorney General Jackson recently led a legal action that was expressly focused on making sure that government resources that had already been authorized were released on schedule.

WNCTimes

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