NC Attorney General sues U.S. Education Department over $50M funding cut

RALEIGH, N.C. — North Carolina Attorney General Jeff Jackson is suing the U.S. Department of Education over its decision to terminate nearly $50 million in federal funding for public schools, most of which serve rural and low-income communities.

The money, awarded through the Full-Service Community Schools program, was already supporting about 23,000 students statewide, including those affected by Hurricane Helene.

State officials say the abrupt cutoff—set to take effect Dec. 31—could force schools to shut down programs and lay off staff mid-year, despite no allegations of misuse.

“Our kids deserve better. A surprise cut of nearly $50 million from rural schools, with virtually no notice and no allegation of misuse, is unlawful and harmful,” said Attorney General Jeff Jackson. “The Department of Education approved these programs, allowed schools to build them, and now it’s trying to pull the rug out from under dozens of rural communities. Our students shouldn’t be treated like that, and we’re going to court to protect them.”

The lawsuit argues the termination is unlawful and violates federal law, education regulations, and the U.S. Constitution.

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