July 27, 2025
Funds

CMS to recoup $12.5 million after Education Department announce release of billions in frozen funds


CHARLOTTE, N.C. (QUEEN CITY NEWS/AP) — Leaders with Charlotte-Mecklenburg Schools said they will receive all $12.5 million it lost after the Trump Administration announced Friday that it’s releasing billions in grant funds withheld for schools.

The Education Department ended weeks of uncertainty for educators around the country who rely on the money for English language instruction, adult literacy, and other programs.

CMS educator fears he might lose his job after $12.5M in much-needed funds withheld

It came after a week of legal challenges across the country, including a lawsuit filed by N.C. Attorney General Jeff Jackson.

North Carolina is set to land $165 million of the frozen funds.

“National reports indicate that the U.S. Department of Education has backed down and is releasing all frozen funds — $6.8 billion nationwide, including $165 million for North Carolina — after we filed suit last week,” Jackson said. “This should end weeks of uncertainty — our schools can now plan, hire, and prepare for a strong year ahead. My absolute best wishes to our state’s 1.5 million students who are ready to make this their best year yet.”

President Donald Trump’s administration had suspended more than $6 billion in funding on July 1, as part of a review to ensure spending aligned with the White House’s priorities.

The funding freeze had been challenged by several lawsuits as educators, Congress members from both parties and others called for the administration to release the money. Congress had appropriated the money in a bill signed this year by Trump.

The CMS school board shared their cautious excitement for the news.

“We are grateful that the federal government will release these funds. We are cautiously optimistic that these grant funds will continue to fund public education in the future and look forward to reviewing and complying with any potential new guidance from the United States (US) Department of Education.

“The Board of Education would like to thank the 150 members of the North Carolina (NC) Democratic congressional delegation who issued a letter to the US Department of Education and their colleagues across the aisle who supported releasing the funds. We are grateful for the efforts of NC Superintendent of Public Instruction Mo Green, NC Attorney General Jeff Jackson, and the many states and public-school districts who stood together to advocate that these funds be released as previously approved in the federal budget.”

Prior to the announcement, CMS and other school districts in the state were preparing to make cuts in areas like teacher development, supplemental resources and personalized instruction.

“We also thank the many CMS students, families, staff, and community partners for standing with the Board to advocate for these funds to be released to CMS and our 141,000 students who will be better supported in forging a bright future for their community,” said CMS Board Chair Stephanie Sneed.

Last week, the Education Department said it would release $1.3 billion of the money for after-school and summer programming. Without the money, school districts and nonprofits such as the YMCA and Boys and Girls Club of America had said they would have to close or scale back educational offerings this fall.

The Office of Management and Budget had completed its review of the programs and will begin sending the money to states next week, the Education Department said.

Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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