Trump admin expected to release full $165M in frozen funding for NC public schools
The Trump administration is expected to release billions in federal education funding, including a total of $165 million for North Carolina, after withholding the money last month and creating panic for public schools.
Attorney General Jeff Jackson, who joined 23 other mostly-Democratic state attorneys general in challenging the funding freeze in federal court last week, announced Friday afternoon that the U.S. Department of Education “has reversed course and is releasing all frozen funds.”
The Department of Education had indefinitely withheld $6.8 billion for programs such as teacher training, after-school programs, summer programs and services for migrant students and English learners while they reviewed whether the funding is “in accordance with the President’s priorities,” according to a letter Department officials sent to grant recipients. However, an official said the administration’s review of the remaining funding has ended, The Washington Post reported Friday.
The Department of Education has not yet made an official announcement.
“This ends weeks of uncertainty,” Jackson said in a post on X. “Our schools can now plan and hire for a strong year ahead. My absolute best wishes to NC’s 1.5m students who are ready to make this their best year yet.”
In a statement, Superintendent of Public Instruction Mo Green said “it is good to see the federal government honor its commitment to our students, our educators, and our schools.”
“I hope this resolution and the release of funds next week marks a return to the predictable, reliable federal partnership that our schools need to serve students effectively,” Green said.
Gov. Josh Stein, meanwhile, posted a photo of himself recently meeting with U.S. Secretary of Education Linda McMahon, thanking her “for releasing much-needed grant funding to help schools across NC better serve our kids.”
“We shared a candid discussion about serving North Carolina’s children and families,” Stein said about his meeting with McMahon. “I look forward to working together to expand workforce opportunities and making sure our kids have what they need to thrive.”
The Department of Education notified states it was withholding funds on June 30. The $165 million North Carolina was expecting was supposed to originally be paid out on July 1.
The Trump administration said last week it was releasing part of the funds, about $1.4 billion to be used to fund summer programs and before-school and after-school programs, after officials said their review of after-school funding was complete. But that still left about $135 million frozen for North Carolina, officials said.
Announcing the lawsuit on July 14, Jackson and Green raised alarm about funding being withheld close to the beginning of the new school year.
“Keep in mind, the next school year for over a million kids is just a few weeks away,” Jackson said at a news conference that day. “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.”
Charlotte-Mecklenburg Schools, which said it would be the most negatively affected district in the state, stood to lose $12.5 million if funds remained withheld. District leaders said that would mean cutting “behind the scenes” services covered by Title II, III and IV money, including teacher development, supplemental English materials and academic enrichment.
The CMS Board of Education called on the federal government to reverse its decision.
“The U.S. Department of Education and the Office of Management and Budget’s unprecedented action significantly restricts CMS’s ability to use federal, state, and local funding effectively,” CMS board members wrote in a letter to the Office of Elementary and Secondary Education at the United States Department of Education. “We urgently request that these critical education funds be immediately released to school districts nationwide.”
In a statement Friday afternoon, CMS said it received official notification that it will receive frozen federal money.
“We are cautiously optimistic and grateful these resources will soon be available,” the district said in its statement. “We look forward to reviewing—and complying with—any new guidance from the U.S. Department of Education. We are committed to serving our students, staff, and community with excellence without exception because endless possibilities start with CMS.”
In Wake County, meanwhile, the school system announced a hiring freeze and spending restrictions earlier this month after $8.1 million the district was supposed receive was frozen.
This story was originally published July 25, 2025 at 4:44 PM with the headline "Trump admin expected to release full $165M in frozen funding for NC public schools."
