North Carolina schools serving military and Native American populations will see a funding pause as a result of the federal government shutdown, leaders said Wednesday.
The federal government entered a shutdown Wednesday after Congress failed to pass a bill to keep the government funded by midnight Tuesday. That means many federal departments are furloughing employees, closing offices and restricting services.
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Officials with the North Carolina Department of Public Instruction don't so far expect any furloughs for its federally funded employees and largely don’t expect impacts from the shutdown in the short-term aside from programs like Impact Aid. That’s largely because schools are mostly funded in advance.
“In the short-term, we feel like we’re OK,” Superintendent Mo Green said.
Long-term, officials are keeping an eye on meal reimbursements for children who qualify for free or reduced-price meals, in case federal savings for those reimbursements run out.
“A prolonged shutdown could have impacts we are not aware of at this time,” said Alexis Schauss, chief financial officer of the state DPI.
But Green and Schauss are concerned about the dozens of public schools that receive about $17 million from the Impact Aid program.
Impact Aid goes directly to schools on federal properties, such as military bases and Native American reservations. It’s not “forward-funded” like most education line items. That means schools haven’t received the funds for the current fiscal year and won’t until Congress approves a plan to fund the federal government and reopen it, Schauss said.
Cumberland County Schools, home to Fort Bragg and the Pope Army Airfield, is the biggest recipient of that funding, about $4.4 million, according to the National Association of Federally Impacted Schools. On Wednesday, Associate Superintendent Lindsay Whitley said the school system will not be disrupted for now by the pause in Impact Aid funds.
Impact Aid can be spent on a wide variety of things, such as instructional materials, teacher salaries, transportation, technology, social-emotional supports, extracurricular activities and facilities, according to the association.
Schools in Harnett, Moore and many other counties are also affected. Onslow County Schools received $3.8 million in 2024, and Swain County Schools received $2.3 million.
Most federal education funding goes through the Department of Public Instruction, rather than directly to schools and is funded for an entire year, unlike Impact Aid.
The department and the state's schools are set to receive about $1.2 billion in federal education funding this year, largely for special education services and assistance to schools enrolling higher shares of lower-income students.
A U.S. Department of Education memo sent to the department indicates those programs will continue to be funded.
One major school program is funded on a reimbursement basis and will continue so long as leftover federal funding remains available.
A U.S. Department of Agriculture memo says free and reduced-price school meals will continue to be reimbursed by USDA at least at first. Schools should receive reimbursements for meals served in September and for the expected number of meals served this month. But meals will only be reimbursed as long as federal carryover funds last. Meal reimbursements are total about $500 million on top of the $1.2 billion in education funds.
The effects of the latest shutdown, as of Wednesday afternoon, appears to be similar to prior shutdowns, including 2018 and 2013, Schauss said.