NC AG Jeff Jackson sues Trump administration for withholding school funding
AI-generated summary reviewed by our newsroom.
- North Carolina joins 24 states suing Trump administration over $6.8B education funds
- NC is at risk of losing $165M, which could cost 1,000 education jobs statewide
- Trump officials cuts funds on grounds they were used for DEI, migrant and LGBTQ+ programs
North Carolina Attorney General Jeff Jackson joined two dozen states in suing the Trump administration for withholding nearly $7 billion in federal education funding.
In a federal lawsuit filed Monday in U.S. District Court in Rhode Island, the 24 mostly Democratic-led states accused the U.S. Department of Education and Office of Management and Budget of unconstitutionally withholding $6.8 billion that had been authorized by Congress.
Jackson said the decision to withhold the money is costing North Carolina’s schools $165 million in needed funding as teachers and students prepare for the new school year. The money was supposed to be given out by July 1.
“Keep in mind, the next school year for over a million kids is just a few weeks away,” Jackson, a Democrat, said at a news conference in Raleigh. “This is the last time when we need to get the rug pulled by the federal government. We need to have teachers, students and parents all focusing on having a successful school year.”
State Superintendent Mo Green, a Democrat, joined Jackson in saying the lawsuit was needed to protect the state’s public schools.
“The impact to North Carolina’s public schools cannot be overstated, as these withheld funds make up about 10% of its federal funding,” Green said. “These funds serve, directly and indirectly, hundreds of thousands of our students, including some of the most vulnerable.”
Teacher jobs at risk
On June 30, the Department of Education notified states that $6.8 billion was being withheld for programs such as teacher training, after-school programs, summer programs and services for migrant students and English learners.
The state initially said that the funding freeze could cost North Carolina $168.8 million before revising the figure to $165 million.
The delay and possible loss of the funding has caused panic for schools across the country. Last week, the Wake County school system announced a hiring freeze and spending restrictions due to not getting $8.1 million.
It could cost the Charlotte-Mecklenburg school system $12.2 million.
Jackson said not having the $165 million could cost 1,000 education jobs across North Carolina. He said it will disproportionately impact rural districts that rely more on grants for funding than urban districts.
The freeze will also cost $18 million for school districts still recovering from Hurricane Helene, Jackson said.
“If this is not addressed, it is going to affect programs like after-school programs for at-risk youth, suicide prevention programs, mental health services for students, STEM education, learning support, adult literacy classes, and may result in higher class sizes in grades K through three,” Jackson said.
In Alamance-Burlington Schools, the frozen funding pays for services such as training teachers, hiring counselors and literacy tutors and supporting multi-lingual students, according to school board chair Sandy Ellington Graves.
“These are not luxuries,” 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.”
OMB: Money used to promote ‘radical left-wing agenda’
Republican President Donald Trump’s administration has questioned how some of the $6.8 billion was being used.
The Office of Management and Budget (OMB) said New York schools had used money for English language instruction to promote organizations that advocate for immigrants in the country illegally, the Associated Press reported. Washington state used the money to direct immigrants without legal status toward scholarships the Trump administration says were “intended for American students.”
Grant funds were also used for a seminar on “queer resistance in the arts,” OMB claimed.
“Many of these grant programs have been grossly misused to subsidize a radical left-wing agenda,” OMB said in a statement to the AP.
The administration said it hadn’t made any final decisions about whether to withhold or release individual grants. But school leaders fear they might not get the $6.8 billion because Trump’s 2026 budget proposal called for Congress to zero out all of the programs under review.
NC leaders question timing of review
“This issue is not just one more partisan disagreement,” said State Board of Education chair Eric Davis, who supported the lawsuit. “This is an unnecessary and irresponsible action against our children.”
Green also questioned the timing of the Trump administration funding review.
“This isn’t about an agenda other than holding funds that directly impact the educational opportunities for our students and directly impact the ability for our educators to deliver on their education,” Green said.
Trump has already cut billions of dollars in federal education funding, including tens of millions of dollars for North Carolina. Trump has threatened to withhold federal funding from schools that promote diversity, equity and inclusion.
In February, the Education Department canceled $600 million in teacher training grants, including more than $90 million in North Carolina, on the grounds that they were being used to promote “divisive ideologies.”
In April, the Education Department announced it was canceling $1 billion in school mental health grants, including $14.1 million for Wake County. The Trump administration again cited the promotion of DEI.
Trump is also pursuing a plan to dismantle the Department of Education, On Monday, the U.S. Supreme Court allowed Trump to go ahead with a plan to lay off nearly 1,400 Education Department employees, the AP reported.
History of Jackson suing Trump
Jackson has joined in seven of the 38 lawsuits filed by Democratic attorneys generals against the Trump administration.
In April, Jackson joined a multi-state lawsuit challenging the federal government’s decision to cut more than $11 billion in health care funding nationwide, saying the state could lose $230 million, the News & Observer previously reported
The Republican-controlled state Senate passed a bill that would block Jackson from being able to sue the Trump administration. The state House hasn’t taken up the bill yet to prohibit the Attorney General’s Office from taking legal action against presidential executive orders.
Jackson said the new lawsuit is an example of why state lawmakers should not try to restrict his ability to sue the Trump administration
“This is potentially $165 million to the state,” Jackson said. “This is why we want an independent attorney general.”
This story was originally published July 14, 2025 at 3:37 PM with the headline "NC AG Jeff Jackson sues Trump administration for withholding school funding."
