NC Attorney General Jeff Jackson Sues to Protect $165M for NC Public Schools & Nearly 1,000 NC Educator Jobs

Raleigh -- North Carolina Attorney Jeff Jackson's Office Press Release July 14, 2025: 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.

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