North Carolina Loses $165 Million in Federal Public Schools Funding

Programs targeting underserved student populations stand to lose millions in federal funding as the Trump administration fails to meet a July 1 deadline.

RALEIGH, NC, UNITED STATES, July 2, 2025 /EINPresswire.com/ -- The U.S. Department of Education announced on Monday that it is withholding $6.2 billion in public education funding from states.

School districts in North Carolina and nationwide face uncertainty after the U.S. Department of Education missed a key deadline to allocate billions of dollars for programs supporting underserved children. The agency was due to release on July 1st roughly $6.2 billion across 5 federal programs, including funds intended to help states support migrant students and English-language learners. The abrupt withholding of funds leaves school districts with little time to replace the funding and will likely result in programs being closed and a reduction in staff.

A notice sent to congressional staff on June 30 warned lawmakers that states wouldn't be getting their funding on time. The money, the notice said, is under review due to the recent change in presidential administrations, and "decisions have not yet been made concerning submissions and awards for this upcoming academic year…The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.”

As Public Schools First Director Yevonne Brannon states, “These proposed cuts will have a significant impact on North Carolina’s public schools which serve many low-income students, migrant students, and students learning English. These funds are critically needed for before- and after-school programs, hiring teachers, and ensuring quality learning support for all students. As many North Carolina school districts start classes within a few weeks (and year-round schools even sooner) school leaders are looking to our lawmakers and federal administration for answers."

The money on hold represents a loss of $13.5% of federal funding for North Carolina’s school districts, according to the Learning Policy Institute, an independent education research non-profit. This reduction comes at the same time that most NC school districts have already cut services and staff to meet their 2025-26 local school budgets while the NC legislature has recessed with no budget for the coming school year.

Here’s a breakdown of the withheld $165.4 million in funding across 5 targeted programs in North Carolina:
Title I-C for migrant education: $5.3 million
Title II-A for educator professional development: $67.9 million
Title III-A for English-learner services: $19.3 million
Title IV-A for academic enrichment: $35.7 million
Title IV-B for before- and after-school programs: $37.2 million

It’s not clear how North Carolina will fill the funding gap. Some state lawmakers have already proposed reallocating the $731 million slated for private school vouchers in 2025-26 to public schools instead, but so far this session their bills have not gained the support needed to become law.

The money on hold represents more than a tenth of federal education funding for all states and territories. The combined national funding being withheld funding across 5 targeted programs nationwide include:

Here’s a breakdown of the withheld funding across 5 targeted programs nationwide:
Title I-C for migrant education: $375 million
Title II-A for educator professional development: $2.2 billion
Title III-A for English-learner services: $890 million
Title IV-A for academic enrichment: $1.3 billion
Title IV-B for before- and after-school programs: $1.4 billion

Heather Koons
Public Schools First NC
+1 919-749-6184
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