NC Resists $50M Rural School Funding Cut by Trump Administration
TL/DR –
North Carolina, along with Maryland and Washington D.C., has launched a lawsuit against the US Department of Education following the sudden termination of nearly $50 million in federal educational grants that support essential services for more than 23,000 students in the state. The grants, issued by the federal Full-Service Community Schools program, were expected to run for five years and have been used to fund after-school programs, mental health support, food and transportation assistance, and other forms of aid. State Attorney General Jeff Jackson argues that the termination of these grants mid-stream violates federal law and jeopardizes vital services for students in rural and low-income areas.
North Carolina Attorney General Jeff Jackson contests abrupt end of federal education funding that impacts over 23,000 students.
Support networks for thousands of students in rural North Carolina, including after-school programs and mental health counseling, face closure due to an abrupt termination of a federal education grant.
Attorney General Jeff Jackson filed a lawsuit against the US Department of Education, arguing that the decision to cut nearly $50 million in funding for rural and low-income schools in the state is “unlawful” and “harmful” to students facing educational barriers.
The federal Full-Service Community Schools program (FSCS) funding is aimed at aiding children attending high-poverty schools, particularly in rural areas. In North Carolina, the grants were expected to run for five years from 2024.
On Dec. 12, 2025, the Department of Education notified recipients that the grants would be terminated effective Dec. 31, potentially causing schools to shut down programs and lay off staff midyear. “A surprise cut of nearly $50 million from rural schools with no allegation of misuse is unlawful and harmful,” Jackson said.
About the grant
The FSCS grants serve 55 public schools across 18 North Carolina districts, covering an estimated 23,000 students, primarily in rural and under-resourced areas. Schools have used the funding flexibly, e.g., for learning opportunities, healthcare services, and college and career exposure.
Image source: NC Department of Justice
Following Hurricane Helene, the funding also enabled schools to assist families with temporary housing, transportation, and securing basic necessities to keep students connected with school during major disruption.
Reason for the lawsuit
The lawsuit, joined by Maryland and Washington D.C., argues that the Department of Education broke federal law by ending multi-year grants like FSCS without citing performance issues or misuse of funds. Despite successful outcomes, the department discontinued the grants due to “conflict with the current administration’s ‘priorities.’” “Our students shouldn’t be treated like that,” Jackson said.
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