Trump administration freezes millions for NC public schools during review

T. Keung Hui, The Charlotte Observer on Jul 7, 2025

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The Trump administration is withholding nearly $7 billion in federal education funding, including $168.8 million that North Carolina public schools had expected to get for the new school year.

On June 30, the U.S. Education Department notified states it was freezing $6.8 billion in funding for programs such as teacher training, after-school programs, summer programs and services for migrant students and English learners. The money was supposed to be given out by July 1, but the Trump administration said it wouldn’t be distributed pending a review.

The delay and possible loss of the funding has caused panic for schools across the country. Some students, such as at year-round schools in Wake County, began the new school year on Monday.

“This delay in funding comes dangerously close to the beginning of the school year, creating unnecessary challenges for our schools as they plan and staff for the year ahead,” state Superintendent Mo Green, a Democrat, said in a statement. “I respectfully urge President Trump and his administration to reassess and swiftly release these funds so that we can adequately prepare to serve all students across North Carolina for the 2025-26 school year.”

Trump targeting federal education spending

Republican President Donald Trump’s administration has already cut billions of dollars in federal education funding, including tens of millions of dollars for North Carolina.

In February, the Education Department canceled $600 million in teacher training grants, including more than $90 million in North Carolina, on the grounds they were being used to promote “divisive ideologies.” The Trump administration has threatened to withhold federal funding from schools that promote diversity, equity and inclusion.

In April, the Education Department announced it was canceling $1 billion in school mental health grants, including $14.1 million for Wake County. The Trump administration again cited promotion of DEI.

The reasons weren’t as clear for freezing the $6.8 billion, although DEI is likely a factor.

“The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities,” Education Department officials wrote in the June 30 notice, which was obtained by The Associated Press.

The memo doesn’t give a timeline for how long the review will take and whether the money will still be provided. School leaders fear they might not get the $6.8 billion because Trump’s 2026 budget proposal called for Congress to zero out all of the programs under review, according to the Associated Press.

But the situation could quickly change.

In June the Education Department announced it was reversing a decision to terminate billions of dollars in unspent federal COVID aid, Education Week reported. The change affects four North Carolina school districts which have $17 million in unspent COVID funds.

‘Vulnerable students’ at risk

The $6.8 billion was previously authorized by Congress, so school officials were expecting to get the money last week.

Green, the superintendent, said the programs impacted by the funding freeze “are absolutely essential for the future and well-being of students across North Carolina.

“Without the nearly $169 million in supports that these grants fund, some of our most vulnerable students will lose access to critical academic resources,” Green said in the statement. “This includes students who face unique educational challenges such as frequent moves, poverty and the need to acquire English as a second language.”

For instance, the freeze is costing $826,000 for OurBRIDGE for KIDS, The Charlotte Observer previously reported. The Charlotte nonprofit provides free after-school and summer programming for immigrant and refugee children.

Green sent school districts and charter schools a memo on Thursday with guidance on how to handle the funding freeze.

“We understand the challenges this creates for planning and staffing, and we appreciate your patience and partnership as we await further guidance from the federal level,” Green said in the memo. “We will continue to provide updates as soon as new information becomes available.”

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