North Carolina Rural Schools Hardest Hit by U.S. Department of Education Funding Halt

Rural school districts stand to lose the most per student if funding withheld by the U.S. Department of Education is not reinstated.

RALEIGH, NC, UNITED STATES, July 3, 2025 /EINPresswire.com/ -- New reporting by Kris Nordstrom of the North Carolina Justice Center shows which school districts in North Carolina stand to lose the most from the U.S. Department of Education’s decision to withhold funding from five major K-12 grant programs. The hardest hit counties are all rural counties. Funding for two adult education programs was also withheld.

On June 30, school districts across the nation were told that they wouldn’t receive their scheduled July 1 funding distribution even though the funds were appropriated by Congress and are part of routine distributions. More than $185 million has been withheld from North Carolina, including over $165 million for K-12 education programs.

As a result of this funding loss, school districts across the state may be required to slash student services. These cuts will disproportionately fall upon rural districts and districts with the greatest share of students experiencing poverty. The average per-student cut ranges from $84 per student in city districts to $131 per student in rural districts (see chart).

The ten districts that stand to lose the most if the funding is not reinstated are all located in rural counties:

Avery County Schools: $580 per student
Ashe County Schools: $434 per student
Polk County Schools: $387 per student
Graham County Schools: $376 per student
Whiteville City Schools: $312 per student
Camden County Schools: $285 per student
Bladen County Schools: $262 per student
Cherokee County Schools: $248 per student
Northampton County Schools: $216 per student
Tyrrell County Schools: $203 per student

In total, nearly $7 billion was withheld from states across the nation. The affected programs disproportionally serve students most in need of support and may devastate programs that rely on federal funds. Here are the five K-12 programs affected and the funding withheld from North Carolina schools:

Title I-C ($5,365,426) Migrant education: Funds programs meeting the special educational needs of children of migrant agricultural workers.
Title II-A ($67,906,396) Professional development: Increases the academic achievement of all students by improving the quality and effectiveness of educators and underserved students’ access to effective educators.
Title III-A ($19,338,744) English-learner services: Supports English Learners in achieving English proficiency, academic excellence, and meeting state standards.
Title IV-A ($37,245,499) Academic enrichment: Boosts students’ academic achievement by increasing the capacity of schools to provide students with access to a well-rounded education, improving school conditions for student learning, and expanding the use of technology.
Title IV-B ($35,719,614) Before- and after-school programs: Supports low-performing schools by establishing or expanding community learning centers that provide academic enrichment opportunities during non-school hours for children, particularly students who attend high-poverty and low performing schools.

Two programs for adults in North Carolina also had funding withheld: Adult Basic and Literacy Instruction lost $18,636,144 and Adult Integrated Literacy/Civics Education lost $1,671,946.

The loss for all seven programs totals $185,874,769. North Carolina lawmakers have not yet finalized next year’s budget; it remains to be seen how the loss of federal education funds will factor into their financial deliberations in the coming weeks.

Heather Koons
Public Schools First NC
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