North Carolina contends in a lawsuit that the U.S. Department of Education unlawfully terminated nearly $50 million in federal education funding for the state's public schools, most of it earmarked for rural and low-income communities.
North Carolina Attorney General Jeff Jackson says the funding was awarded through the federal Full-Service Community Schools program and was already being used to support about 23,000 students, including in counties heavily affected by Hurricane Helene.
On December 12, the Department of Education notified North Carolina that these grants would be terminated effective December 31. If allowed to stand, this will force schools to shut down programs and potentially lay off staff in the middle of the school year.
"A surprise cut of nearly $50 million from rural schools, with virtually no notice and no allegation of misuse, is unlawful and harmful,” said Jackson. “The Department of Education approved these programs, allowed schools to build them, and now it’s trying to pull the rug out from under dozens of rural communities.”
Congress authorized and funded the program to support schools serving communities with high poverty, poor health outcomes, and lower educational attainment. In 2023, the Department of Education awarded more than $49.8 million to the North Carolina Community Schools Coalition.
The Department of Education had previously reviewed and approved how this funding would be used when the grants were awarded. Now, without alleging misuse or performance failure, the Department is pulling the rug out from the rural schools that followed the rules and relied on the federal government’s word.
The lawsuit alleges that the Department of Education’s actions violate the Administrative Procedure Act, federal education regulations, and the U.S. Constitution, which gives Congress – not executive agencies – the authority to direct federal spending.
