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NC Sues Department of Education over Nearly $50M in School Funding Cuts, AG Says

The state claims the grant termination violates federal law and will disrupt programs helping 23,000 students in rural, low-income areas, including those affected by Hurricane Helene.

  • On Dec. 12, North Carolina Attorney General Jeff Jackson sued the U.S. Department of Education after it notified the state that nearly $50 million in Full-Service Community Schools grants would end Dec. 31.
  • Jackson's office argues the Department of Education reviewed and approved funding plans when awarding multi-year FSCS grants, which under federal law can be terminated only for performance-based reasons.
  • The funding supports roughly 23,000 students in mostly rural, low-income communities across 55 schools in 18 public school districts, including expanded learning, early childhood education, literacy and family programming used after Hurricane Helene.
  • The lawsuit contends that the cuts will force program closures and layoffs midway through the academic year, alleging violations of the Administrative Procedure Act and federal education regulations, with Attorney General Jeff Jackson saying `Our kids deserve better`.
  • Designed for local flexibility, the 2023 award of more than $49.8 million from Congress under the Elementary and Secondary Education Act and the Every Student Succeeds Act supports rural and low-income communities, including efforts after Hurricane Helene.
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WCNC broke the news in on Wednesday, December 31, 2025.
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