By Jordan Meadows
Staff Writer
On Monday, North Carolina Attorney General Jeff Jackson and State Superintendent of Public Instruction Mo Green announced joining a coalition of 24 states and the District of Columbia in a federal lawsuit against the Trump administration, challenging the abrupt freeze of more than $6.8 billion in federal education funds.
The funding freeze, enacted without warning on June 30—just hours before schools expected disbursement—is already having ripple effects across the state. North Carolina was due to receive $165 million to help fund public schools, charter schools, and nonprofits.
The U.S. Department of Education claims the pause is part of an "ongoing programmatic review" amid concerns that the funds have been "grossly misused to subsidize a radical left-wing agenda,” including support for undocumented students and progressive arts initiatives. State leaders argue the cuts are not only unlawful but devastating to vulnerable student populations.
"These funds serve, directly and indirectly, hundreds of thousands of our students, including some of the most vulnerable," said Green. "Now hundreds of public school employees' positions are at risk, and thousands of students are faced with the reality that they may not be able to access the very funds they need to succeed."
The lawsuit argues that the Trump administration’s action violates the Constitution by overriding Congress’s explicit appropriations for these programs. Jackson confirmed the state is seeking a preliminary injunction to force the Department of Education to release the funds before schools fully reopen in August.
"We're asking the court to treat this as an emergency," Jackson said. "We are hopeful that we get an outcome before the school year begins. We need this to be resolved within a matter of weeks, not months."
The freeze affects six major federal education programs in North Carolina, supporting initiatives ranging from teacher development to after-school programs and services for English language learners. $68 million for teacher training and professional development; $30+ million for before- and after-school care; and funding for nonprofits like the YMCA and Boys and Girls Clubs serving at-risk youth.
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. Schools in Ashe, Hoke, and Graham counties are especially vulnerable.
Charlotte-Mecklenburg Schools (CMS) alone stands to lose more than $12 million.
“These are not luxuries,” Alamance-Burlington School Board Chair Sandy Ellington Graves said. “They are fundamental to creating a supportive and enriching learning environment. The withholding of these funds is not just a financial challenge, it’s a challenge to our commitment to provide educational excellence for all students.”
North Carolina's Boys and Girls Clubs receive about $4.7 million for the programs, funding 209 full- and part-time staff serving about 2,500 children at 21 sites—all of which could go away without the funds, said Heather K. Brosz White, director of the NC Alliance of Boys & Girls Clubs.
States joining North Carolina include California, New York, Illinois, Massachusetts, Oregon, and Washington, among others. The governors of Pennsylvania and Kentucky have also signed on.
Many schools had already begun hiring for the 2025–26 school year when the freeze took effect, leaving districts scrambling. Wake County Public Schools has already implemented a hiring freeze. Green said school districts may only have about three months, at most, of carryover funding to keep the programs going.
The lawsuit, filed in federal court, seeks urgent judicial intervention. Whether the funds will be unfrozen before students return to classrooms remains uncertain, but North Carolina leaders are preparing for the worst.
