The NCGA is still on vacation, and we await further action on the budget when they return. It’s been another active week on the federal level, however, with big updates from the Supreme Court and states filing suit against the withholding of federal funds.
Supreme Court Decision and the US Department of Education
On Monday, the United States Supreme Court issued an order allowing President Trump to proceed with a reduction in force at the Department of Education. This move effectively guts the department, which oversees critical funding streams, manages federal student loans, tracks student achievement and enforces civil rights laws in schools. At this time, it remains unclear how these efforts may continue and under which federal agency’s authority. This article from November, when the role of the Department of Education reentered the national spotlight, is a reminder of potential changes and challenges that lie ahead.
Withholding of Federal Funds
At the end of June, it was announced that $6.8 billion in federal funding ($169 million from North Carolina) was being withheld from schools and districts. We now have a better picture of the immediate and future implications of this action.
Our districts are already feeling the impacts:
- Wake County is implementing hiring and spending restrictions, and warns that the loss of funds will seriously impact their ability to maintain positions, programs, and resources.
- New Hanover County was planning to use these funds for their beginning teacher support program and resources for multi-language learners, among other efforts.
- Pender County confirmed that their frozen funds affect 38 staff members, $100,000 in professional development and $250,000 in afterschool programming.
- Over 11,000 children across North Carolina are in afterschool programs that will be impacted.
Across the nation, states are scrambling. While some have tapped into reserves to cushion the impact, others that have already finalized their budgets for the upcoming school year have no reserves to pull from. The state union in Georgia, for example, is calling for a special session of the legislature to allocate funds to fill the gaps.
On Monday, NC Attorney General Jeff Jackson announced that North Carolina would join over 20 states in suing the current administration to unfreeze these funds, arguing that the federal government violated the Administrative Procedure Act and the separation of powers. The plaintiffs view this as a straightforward, legal argument and are confident they can prove a constitutional violation and harm done to the states.
What can you do?
Lawsuits like this can take a long time to resolve, and our students will suffer while we wait. National policymakers need to hear from you– How will this funding freeze affect you and your community?
- Find out what the impact in your school district will look like, and the broader impact in your Congressional district. You can also read about what each of the frozen federal programs are for.
- Find your US Representative and contact them by phone or email. Let them know how these cuts will impact your students, and advocate for the immediate release of these critical funds. Here is a sample template you can personalize.

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