Charlotte

North Carolina AG Jeff Jackson Sues to Release $165M in Frozen Education Funds Amidst Statewide School Budget Crisis

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Published on July 23, 2025
North Carolina AG Jeff Jackson Sues to Release $165M in Frozen Education Funds Amidst Statewide School Budget CrisisSource: Unsplash/Tingey Injury Law Firm

In a legal challenge against a funding freeze enacted by the Trump administration, North Carolina Attorney General Jeff Jackson has been spearheading a lawsuit to unfreeze $165 million designated for education in the state. During his visit to the Dream Center Academy in Gastonia, Jackson emphasized the turmoil the freeze has caused, with every school district in North Carolina being affected. According to a QC News report, Jackson stated, "This last-minute maneuver has injected a ton of chaos into public schools across the state."

Charlotte-Mecklenburg Schools are among the affected, facing a $12.5 million shortfall that has forced a spending freeze and potential cuts in the external contracts. "While 2025-26 is going to be an extremely difficult budget year, we prepared for the uncertainty of the entitlement grants," Kelly Kluttz, CMS Chief Finance Officer, told The Charlotte Observer. The cuts, if necessary, are set to impact every school and every student in the district.

At a joint event with North Carolina Board of Education Board Chair Eric Davis, Jackson highlighted the Dream Center Academy's role in serving middle and high school students, fostering academic and personal growth in Gaston County. A piece by WCNC noted the Dream Center's crucial support from federal funds, with a significant part of its budget being made up of these grants.

A group of attorneys general, including Jackson, has requested that the court considers their case as an emergency with hopes that it can be resolved before the start of the school year. The Department of Education's last-minute notice of withholding funds—announced just one day before they were to be distributed—has thus subjected school communities to a sudden and deep uncertainty. According to QC News, Jackson is optimistic: "I believe we will obtain that preliminary injunction. It's critical that we get a response from the court on this before the school year starts."

The urgency is compounded by individual narratives of students like Kenedi Armstrong and Logan Hawkins, profiled by WCNC, showing the real impact these funding roadblocks have on lives and futures. Armstrong, having discovered a passion for teaching through a job shadowing program at the Dream Center, and Hawkins, whose academic aspirations in chemistry have been fostered by his tutor, exemplify the tangible benefits of such federally funded programs.