FOR IMMEDIATE RELEASE
Monday, July 14, 2025
Email: bconroy@ncdoj.gov
Phone: 984-383-9038
Attorney General Jeff Jackson Sues to Protect $165 Million for NC Public Schools and Nearly 1,000 NC Educator Jobs
RALEIGH – Today, Attorney General Jeff Jackson and 24 other states sued to prevent the federal government from cutting funds for North Carolina’s schools and educators. Without the $6.8 billion in nationwide federal funds – which Congress has already approved – North Carolina’s schools will lose more than $165 million in public education funding and nearly 1,000 educators across the state will lose their jobs. The cuts make up nearly 10 percent of all of the state’s federal educational funding.
“Public schools across North Carolina, especially in rural areas, need this money to keep teachers in the classroom and keep kids safe while they learn,” said Attorney General Jeff Jackson. “It’s unlawful and unconstitutional for the Department of Education to withhold money that Congress has appropriated. I’m going to court to get this money for our students, our schools, and North Carolina families.”
“Today, North Carolina is taking action to unfreeze funding for North Carolina public schools that was appropriated by Congress,” said Governor Josh Stein. “Without these funds, nearly 1,000 teachers will have their jobs taken from them. The money also provides after-school programs, supports children learning English, and helps adults learn how to read. Schools are counting on these funds; without them, they will be left scrambling as kids return to classrooms. I thank Attorney General Jackson for bringing his action and call on the U.S. Department of Education to release the funds that North Carolina is owed.”
“While the NC Department of Public Instruction respects the federal administration’s right to review programs, I must emphasize that our legal obligations to serve these students remain unchanged, and the timing creates significant and unnecessary challenges for schools, community organizations, and most importantly, the children who depend on these services,” said North Carolina Superintendent of Public Instruction Maurice (Mo) Green. “I support efforts, including this nationwide lawsuit, to resolve this situation quickly and ensure that North Carolina students receive the support they need and deserve and that our federal government agreed to provide them.”
The federal education grant funding at stake in this lawsuit supports North Carolina public school budgets, teacher salaries, before- and after-school programs for students, community learning centers, teacher development programs, and more. Summer programs and hiring for the school year were already underway in anticipation of the grant funds being released on July 1. But hours before, on the evening of June 30, the Department of Education paused the flow of these funds nationwide without warning, even though they were already approved by Congress. These funding cuts place a significant burden on our state’s public schools for the 2025-2026 school year, with some schools having already started and the rest starting over the next few weeks.
The cuts would disproportionately impact rural North Carolina school districts, which rely heavily on these grants to pay teachers, keep their schools open, and give students the support they need to learn. Recent data shows that rural school districts will suffer the largest drop in investment per student, with some districts losing over $300 per pupil. Nine of the 10 school districts losing the most money per student are in rural North Carolina. The counties devastated by Hurricane Helene are facing a cut of roughly $18 million.
The loss of nearly 1,000 educator jobs could be a major blow to school districts throughout North Carolina, especially given the state’s ongoing teacher shortage, and to the state’s economy. For the 2023-24 school year, data shows almost 9,000 NC teachers left the profession.
Attorney General Jeff Jackson is joined in filing this lawsuit by the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin, and the governors of Pennsylvania and Kentucky.
You can read the complaint here.
You can read DPI Superintendent Green’s declaration here.
A breakdown of impacts to employees and funding by district is available here.
VIDEO
Download the full video clip here.
Download segments from Attorney General Jackson’s video below:
Clip 1: “It’s almost $170 million for North Carolina… just weeks before the school year is set to start.”
Clip 2: “It would disproportionately impact rural communities in North Carolina… that’s why I and a number of other AGs will be taking the Department of Education to court.”
GRAPHICS (AVAILABLE FOR MEDIA USE)
QUOTES
“The decision to freeze $165 million in federal funding is an unnecessary and irresponsible act against our children. Every student in North Carolina — in every classroom, in every community — benefits from these critical resources. Educating our children should rise above politics. We call on the Executive Branch to act now in the best interest of every student. Their futures cannot wait.”
– Eric Davis, North Carolina State Board of Education Chair
“In the Alamance-Burlington School System district alone, withholding these funds impacts professional development for over 250 new teachers, support for nearly 4,000 multilingual learners, and crucial academic enrichment services for our most vulnerable students. These impacts multiply across every district in North Carolina. The withholding of these funds is not merely a financial challenge—it is a direct threat to our ability to provide the resources and support our students deserve.”
– Sandy Ellington Graves, Alamance Burlington School Board Chair
“The timing of the announcement of the federal funds being impounded occurred as school systems are working to start the 2025-26 school year, making it very difficult. As we review the specific funds and their purposes, the impact on our work will be critical. In the area of Title IIA, funds supporting our teacher mentor program would have to be funded locally or eliminated. This is an award-winning program that has led to an attrition rate for first year teachers of 1.7% while the state-wide rate is 26.5%. Funds in Title IVA are targeting specific areas such as MTSS support, critical high school curriculum needs, etc. In light of this action, funding for these programs and activities will have to shift to local funding, which for us (and many other systems) is very limited already. We are grateful for these and any funds that support our work with students. With the threat of these funds not being available, the value of their use is immediately evident as is the potential negative impact of their loss or delay.”
– Caldwell County Schools Superintendent Don Phipps
COUNTY STATS (AVAILABLE FOR MEDIA USE)
- Mecklenburg County stands to lose more than $12.2 million in public education funding if these federal education grants are eliminated.
- Guilford County stands to lose more than $6.2 million in public education funding if these federal education grants are eliminated.
- Forsyth County stands to lose more than $5.5 million in public education funding if these federal education grants are eliminated.
- Wake County stands to lose more than $8 million in public education funding if these federal education grants are eliminated.
- Buncombe County and Asheville City Schools stand to lose almost $2.8 million in public education funding if these federal education grants are eliminated.
- New Hanover County Schools stand to lose more than $1.6 million in public education funding if these federal education grants are eliminated.
- Pitt County stands to lose nearly $2.2 million in public education funding if these federal education grants are eliminated.
- Cumberland County stands to lose more than $4.2 million in public education funding if these federal education grants are eliminated.
- Robeson County stands to lose almost $3.2 million in public education funding if these federal education grants are eliminated.
- Pender County stands to lose more than $1 million in public education funding if these federal education grants are eliminated.
- Nash County stands to lose more than $2.1 million in public education funding if these federal education grants are eliminated.
- Cabarrus County stands to lose more than $1.6 million in public education funding if these federal education grants are eliminated.
- Ashe County stands to lose more than $1.1 million in public education funding if these federal education grants are eliminated.
- Wayne County is set to lose almost $2 million in public education funding if these federal education grants are eliminated.
- Union County stands to lose more than $1.8 million in public education funding if these federal education grants are eliminated.
- Onslow County Stands to lose more than $1.8 million in public education funding if these federal education grants are eliminated.
- The counties devastated by Hurricane Helene are facing a cut of roughly $18 million.
IMPACT OF FUNDING CUTS
- “New Hanover County Schools: $1.6 million. About half of that goes toward helping new teachers, according to [New Hanover County] Superintendent Christopher Barnes.”
- “The district is already at minimum staffing levels and can’t afford to lose more people, the superintendent said, but most of their budget also revolves around people.”
- “‘As we look through this, 83% of the solution comes from people,’ Barnes said. ‘There’s minimal things you can do to really move the needle in a significant way that doesn’t touch people.’”
WFDD: Federal education funding freeze impacting Triad schools
- “[Guilford County Schools] Superintendent Whitney Oakley spoke about it briefly at a school board meeting this week. ‘These funds help us support teacher and principal growth and development, instructional support and critical safety programs,’ Oakley said.”
- “Guilford County School Board Member Khem Irby urged parents to get involved too. ‘Your children are at risk of losing a lot of services,’ Irby said. ‘If we don’t get the funding that we need, it’s going to be a struggle in those classrooms.’”
- “[Forsyth County Schools] Interim Superintendent Catty Moore said that may halt a number of initiatives, including The Crosby Scholars program, which helps students prepare for college enrollment.”
ABC 11: More than $8 million in federal funding being withheld from Wake County Public School System
- “The school system tells ABC11 that these funds will have a serious impact on the ability to maintain positions, programs, and resources. In response to the lack of funding, the district is extending a 90-day hiring freeze period and will continue restrictions on spending and out-of-state travel. The shortfall comes as the schools system is raising prices for breakfast and lunch next year for the 4th time in a row.”
WSOC: Millions in federal funds for CMS halted, pending review
- “CMS confirmed the impact of the funding freeze, stating that the district faces two options: understaff classroom support positions or incur $1 million in monthly debt.”