FOR IMMEDIATE RELEASE
Wednesday, December 31, 2025
Contact: nahmed@ncdoj.gov
919-538-2809
RALEIGH – Attorney General Jeff Jackson is suing the U.S. Department of Education for unlawfully terminating nearly $50 million in federal education funding for North Carolina public schools, most of it serving rural and low-income communities.
The funding was awarded through the federal Full-Service Community Schools (FSCS) program and was already being used by schools across North Carolina to support approximately 23,000 students, including in counties heavily impacted by Hurricane Helene.
On December 12, the Department of Education notified North Carolina that these grants would be terminated effective December 31. If allowed to stand, this will force schools to shut down programs and potentially lay off staff in the middle of the school year.
“Our kids deserve better. A surprise cut of nearly $50 million from rural schools, with virtually no notice and no allegation of misuse, is unlawful and harmful,” said Attorney General Jeff Jackson. “The Department of Education approved these programs, allowed schools to build them, and now it’s trying to pull the rug out from under dozens of rural communities. Our students shouldn’t be treated like that, and we’re going to court to protect them.”
Congress authorized and funded the Full-Service Community Schools (FSCS) Program through the Elementary and Secondary Education Act and the Every Student Succeeds Act to support schools serving communities with high poverty, poor health outcomes, and lower educational attainment. In 2023, the Department of Education awarded more than $49.8 million through this program to the North Carolina Community Schools Coalition, which includes the Department of Public Instruction. Over five years, the coalition planned to serve 55 schools across 18 North Carolina public school districts.
The grants support students in rural and under-resourced areas by expanding learning opportunities, addressing Adverse Childhood Experiences (ACEs) that affect student development and success, strengthening and retaining effective elementary and middle school educators, and improving student achievement. They also fund early childhood education and literacy initiatives, family programming, and college and career exposure opportunities, including college tours and presentations from trade programs.
The FSCS program is designed to give schools local control so they can respond to the real needs of their students and communities. Rural districts face different challenges, and this flexibility allows schools to decide how best to support students – whether that means addressing food insecurity, expanding after-school programs, providing health or mental health services, or helping families stay housed.
That flexibility is especially critical during emergencies. After Hurricane Helene, schools used these funds to help families secure temporary housing and transportation so students could remain connected to school during a period of extreme disruption.
Despite its abrupt termination, the Department of Education had previously reviewed and approved how this funding would be used when the grants were awarded. Schools were transparent from the outset about how they planned to support students, the Department signed off on those plans, and districts relied on that approval to hire staff and build programs.
Now, without alleging misuse or performance failure, the Department is pulling the rug out from the rural schools that followed the rules and relied on the federal government’s word. Under federal law, multi-year grants like these can only be terminated for performance-based reasons.
“NC Community Schools exist at the intersection of grassroots community engagement and evidence-based school improvement strategy,” said Dan Kimberg and Dr. Kanecia Zimmerman, Co-Directors of the NC Community Schools Coalition. “NCCSC’s work in communities across NC has demonstrated what is possible when schools, staff, students, families, and community members are empowered to lead transformational change to meet their local needs.”
“The Community School infrastructure was a key reason United Way of Asheville and Buncombe County was able to step into a central role in relief and recovery following Hurricane Helene,” said Dan Leroy, CEO of the United Way of Asheville City and Buncombe County. “Community School Coordinators helped organize donations from across the state, and connected families to vital resources like food, clothing, household goods, cash, and temporary housing, Family Resource Centers—designed to respond to community-identified needs—did exactly that, serving as trusted hubs of support in the immediate aftermath of the disaster.”
The lawsuit alleges that the Department of Education’s actions violate the Administrative Procedure Act, federal education regulations, and the U.S. Constitution, which gives Congress – not executive agencies – the authority to direct federal spending.
A copy of the complaint is available here.
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“Community schools embody our commitment to excellence in education, ensuring every child—regardless of ZIP code—has access to wraparound services that support learning. These federal funds serve our most rural and under-resourced communities, providing mental health support, after-school programs, and family services that improve attendance and achievement.”
– North Carolina Department of Public Instruction
“In Hyde County, our school is the center of our communities. Often it’s a reliable place that families can turn for support. This is especially true in a rural community, where access to services can be limited by distance, transportation, and availability. That is why the Full-Service Community Schools program has been so impactful for us this year. With this federal grant from the U.S. Department of Education, we have been able to implement wraparound supports like rural health options, food and clothing resources, parent education, and engagement opportunities that help remove barriers to learning. The outcome is not just stronger connections between schools and families, but real improvements in student attendance and readiness to learn. When funding like this is canceled, it hits rural communities hardest. This grant levels the playing field by ensuring students have the supports they need to succeed. Canceling this program pulls resources from communities that already have the fewest options and the greatest needs.”
– Dr. Melanie Shaver, Superintendent, Hyde County Schools
“As an existing Community Schools site, Sampson County Schools has seen firsthand how this work strengthens student outcomes by addressing barriers beyond the classroom. Community Schools funding allows us to coordinate academic supports with mental health services, family engagement, and community partnerships — especially critical in a rural county like ours where access to services is limited. The abrupt cancellation of this funding disrupts proven, student-centered systems that were already making a difference for our schools and families.”
– Dr. Jamie King, Superintendent, Sampson County Schools