NC Counters Trump Team’s $50M Cut in Rural Education Funding
TL/DR –
The Trump administration has abruptly terminated a federal rural education grant, threatening critical services for over 23,000 students in North Carolina. In response, the state’s Attorney General Jeff Jackson has launched a lawsuit against the US Department of Education, arguing the decision to cut almost $50 million in funding is “unlawful” and “harmful” to students who are already facing learning barriers. The funds, which come from the Full-Service Community Schools program, support public schools across 18 districts in the state, and are used for a variety of purposes including expanding learning opportunities, offering healthcare services, and providing assistance during emergencies such as hurricanes.
NC Attorney General Jeff Jackson is contesting the termination of a federal rural education grant, claiming it violates federal law and jeopardizes important educational services for over 23,000 rural students.
Thousands of students in rural North Carolina are at risk of losing critical support networks including after-school programs, mental health counseling, and familial assistance due to the abrupt termination of a federal rural education grant by the Trump administration.
Attorney General Jeff Jackson has filed a lawsuit against the US Department of Education, arguing the decision to cut nearly $50 million in funding for rural and low-income schools is both “unlawful” and detrimental to students.
The funding is from the federal Full-Service Community Schools program (FSCS), designed to support children and families in high-poverty and rural schools. In North Carolina, these grants were given to the NC Community Schools Coalition in 2024, with a five-year expectancy.
“NC Community Schools operate at the junction of community engagement and evidence-based school improvement,” say the co-directors of the NC Community Schools Coalition.
On Dec. 12, 2025, the Department of Education announced the grants’ termination effective Dec. 31, giving schools minimal notice. If the decision persists, the state Department of Justice will cease rural education programs and possibly lay off staff midyear.
“A surprise cut of almost $50 million from rural schools is unlawful and harmful,” Jackson said. “The Department of Education has allowed schools to build these programs and is now trying to pull the rug out from under numerous rural communities.”
The grant’s function
The FSCS grants benefit 55 public schools across 18 North Carolina districts, serving an estimated 23,000 students, primarily in rural and under-resourced areas. The funding has been used flexibly to expand learning opportunities, provide health care services, and offer college and career exposure.
This flexibility was essential after Hurricane Helene, as schools used the funds to help families secure temporary housing, transportation, and basic necessities that would allow students to stay connected to school during a period of extreme disruption.
The rationale behind NC’s legal action for rural education funding
The lawsuit, supported by Maryland and Washington D.C., asserts that the Department of Education broke federal law by terminating multi-year rural education grants like FSCS without citing performance problems or misuse of funds. Despite the successes of these programs, Education Secretary Linda McMahon decided to discontinue the grants due to a supposed conflict with the current administration’s ‘priorities.’
“Our students shouldn’t be treated like that,” Jackson said. “And we’re going to court to protect them.”
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