Raleigh-Durham

North Carolina Attorney General Sues Federal Government to Restore $165 Million in Withheld School Funds

AI Assisted Icon
Published on July 15, 2025
North Carolina Attorney General Sues Federal Government to Restore $165 Million in Withheld School FundsSource: Unsplash/Wesley Tingey

In a move to safeguard critical funding for public education in North Carolina, Attorney General Jeff Jackson, along with counterparts from 24 other states, has taken legal action against the federal government's abrupt decision to withhold $6.8 billion in school funds, a sum previously greenlit by Congress, according to a press release from the NC Department of Public Instruction. The withheld funds threaten to erode over $165 million destined for the Tar Heel State's educational coffers, a cut that stands to jettison nearly 1,000 teaching jobs – these potential layoffs and disrupted programs arriving amidst an ongoing educator exodus which saw almost 9,000 NC teachers hang up their hats in the 2023-24 cycle.

Characterizing the federal move as "unlawful and unconstitutional," Jackson emphasized the importance of those monies for maintaining educational personnel and safety within schools, stressing, “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," as he told the NC Department of Public Instruction. Governor Josh Stein also voiced his support, underscored the dire implications tied to the funding freeze suggesting without these funds, countless afterschool programs lives could be changed supports for children with language barriers will be at significant risk, and countless adults' literacy journeys could be halted – all while commending the Attorney General's decision to challenge the Department of Education.

Adding to the chorus of concern, NC Superintendent of Public Instruction Maurice (Mo) Green acknowledged the federal government's oversight authority, yet issued a reminder of the state's unchanged educational commitments, according to an interview obtained by the NC Department of Public Instruction. Green supported the pending lawsuit as a path to rapid resolution, ensuring that the state's students receive the investments and opportunities their federal agreement promised.

The standoff over federal grant funding, crucial for North Carolina's public school system, arrives at a precarious moment as programs and hiring relying on the July 1 fund release were abruptly stalled on June 30 by the Department of Education's decision to freeze these funds designed for teacher salaries, before- and after-school programs, and community learning centers leaving schools already in session wrangling with immediate funding gaps and those soon to open facing a fiscal cliff edge. Rural districts bear the brunt of the pain, where such dollars translate directly to key educational resources – the potential cutback looms especially severe where Hurricane Helene tore through, leaving an aftermath and a financial void of approximately $18 million.

Joining North Carolina's lawsuit are attorneys general hailing from a wide spectrum of states, including Arizona, California, and New York, alongside the governors of Pennsylvania and Kentucky, collectively representing a national rebuke to the funding freeze, firmly planting their position in court to secure the foundational investment both agreed upon by Congress and expected for the vital continuance of public education throughout the country.