A year of upheaval: how much NC public school funding was affected by federal cuts and delays

WUNC | By Liz Schlemmer

Published November 17, 2025 at 3:09 PM EST

Recipients of the canceled mental health grants in North Carolina said they appealed the decision and asked the Department of Education to restore their grant funding, but they have not heard back.

For public schools, this has been a turbulent year when it comes to federal funding. About 10 percent of public school funding comes from the federal government. This year, schools have faced canceled grants, delayed funding, and abrupt decisions by the U.S. Department of Education.

WUNC host Bradley George interviewed education reporter Liz Schlemmer to take a look back on the year in federal K-12 funding.

This interview has been edited for clarity.

Bradley George: Liz, you tracked these developments and found that at least $325 million in federal funds for K-12 education in North Carolina was either delayed or canceled this year. Can you break that down?

Liz Schlemmer: Sure. There are two broad categories: grants that schools or agencies apply and compete for, and annual funding approved by Congress.

Some of those grants were canceled mid-way through multi-year projects that were approved under the Biden administration. More than a third of the funding I tracked, about $121 million, was grant funding that was canceled.

Then, there's Congressionally-approved funding that was delayed for mainly two reasons: because of the federal shutdown or because the U.S. Department of Education tried to halt the funds, saying they didn't meet the President's priorities.

What are some funds that were canceled outright? What justifications did Trump's Department of Education give?

The largest amount of grant funding canceled in North Carolina was $90 million for teacher training grants to recruit teachers to work at hard-to-staff schools. The next biggest was for mental health grants, to train and recruit school counselors and psychologists.

In the cancellation notices, the Department talks about projects that promote "divisive ideologies," or that take race into account in hiring or deciding where resources go.

Wake County Schools, for example, lost both of those grants. They say they were using the funds to hire people of all races. But yes, they were also trying to boost diversity among their staff to better reflect their students. The original grant applications under the Biden administration actually encouraged that.

What are some funds that were pulled back and then reversed? And this has to do with legal action, right?

One of the big stories I tracked over the summer was a back-and-forth over $165 million in school funds the state expected to receive for various programs, including summer programs, English language services, and teacher training.

All this funding was approved by Congress, and the day before it was set to go out, the Department of Education halted it for review, nationwide.

North Carolina was one of 24 states to sue, arguing the executive branch doesn't have that authority. Within two weeks of that lawsuit being filed, the Department released the funds.

I recently spoke with State Superintendent Mo Green, who supported that lawsuit. Here's what he had to say about the result:

"Certainly was pleased with the short-term outcome that allowed those funds to actually be provided. But I have to be honest that I certainly have concerns about what this might suggest longer-term. Because if you're willing to do this, what else are you willing to do?"

Green called the situation "very unusual" because this funding was approved by lawmakers and usually comes on time every year.

What does this chaotic year mean for school officials, those making decisions about how to spend education funds?

The research center at the magazine Education Week surveyed school finance officers and found that more than three-quarters of respondents expect federal funding for schools to drop in the coming years.

And EdWeek found in their reporting that some school districts were pre-emptively cutting spending, already assuming the funds won't be there in the future.

State Superintendent Green described the situation like this:

"When you say, 'Gosh, am I going to have these resources tomorrow? Maybe I should hold back on purchasing certain things or not do things that I know are most effective, because I don't know whether I'm going to have those resources the next month.' You start operating differently – which I think also then negatively impacts students."

Green added that educators are doing everything they can to shield students from feeling any impact. But he's worried that school officials are going to hold back on making the best decisions on how to spend funds, because they're too worried about those funds disappearing.