Trump administration withholds $169M from NC public schools amid review

About $169 million is being withheld from North Carolina public schools pending a federal review of how those dollars are spent.

The six grant funding programs that are held up support teacher training, before- and after-school education programs in low-performing schools, enrichment programs, English language education for immigrant students, immigrant student and family support, and special education services for migrant students.

Nearly every North Carolina public school system or public charter school receives funding from at least one of the programs, and more than 70 organizations receive funding for before- and after-school educational programming, including YMCA chapters and chapters of the Boys and Girls Clubs of America.

The U.S. Department of Education sent notice Monday to the North Carolina Department of Public Instruction of the pause, which said federal officials were reviewing the programs.

"Decisions have not yet been made concerning submissions and awards for this upcoming academic year," the notice states. "Accordingly, the Department will not be issuing Grant Award Notifications obligating funds for these programs on July 1 prior to completing that review. The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.”

The funds were due to be distributed by July 1.

The Trump administration has canceled numerous grants worth hundreds of millions of dollars for schools, including in North Carolina, related to student mental health, teacher training and teacher apprenticeships.

As of Wednesday afternoon, school systems told WRAL News they had not received any communication from the state Department of Public Instruction nor the federal education department about the latest review.

The Wake County Public School System, which received $8.3 million in these grants last year, according to state allotment data, plans to proceed as normal, a spokeswoman told WRAL News. Dozens of the district's schools are year-round and start the new school year Monday.

Durham Public Schools Superintendent Anthony Lewis released a statement to WRAL News calling for the immediate release of the funds, which he said were already authorized by Congress to be spent.

"These funds are critical to ensuring our classrooms are fully staffed, our schools are safe, and our scholars receive the support and enrichment they deserve," Lewis said. "With the new school year quickly approaching and our year-round schools beginning in less than three weeks, any delay in funding jeopardizes our ability to deliver on our promise to scholars and families - to ignite limitless potential.

"We urge the U.S. Department of Education and the White House Office of Management and Budget to act without delay. Our children cannot afford to wait."

U.S. Department of Education officials declined to answer questions from WRAL about why the review was taking place, how long the review would take and whether funding could be cut based on the review. Instead, the officials routed WRAL to the federal Office of Management and Budget at the Trump White House.

A spokesperson there told WRAL News at least some of the funds had been used in ways the Trump administration disagrees with.

"Initial findings have shown that many of these grant programs have been grossly misused to subsidize a radical leftwing agenda," the spokesperson said in a statement. "In one case, NY public schools used English Language Acquisition funds to promote illegal immigrant advocacy organizations. In another, Washington state used funds to direct illegal immigrants towards scholarships intended for American students. In yet another, School Improvement funds were used to conduct a seminar on 'queer resistance in the arts.' As stated before, this is an ongoing programmatic review and no decisions have been made yet."

The funding represents about 1% of the more than $16 billion in funding for North Carolina's public schools that comes from all state, county and federal sources.

The total figure being held up nationwide is more than $6 billion, the Associated Press reported. The Learning Policy Institute, an education think tank, estimates the funds represent at least 10% of what states receiving from the U.S. Department of Education for public schools.

In North Carolina, the biggest program on hold is for teacher training, about $67.9 million last year.

Before- and after-school educational programs in low-performing schools -- also known as 21st Century Community Learning Centers -- received $38.9 million. Some of those grants were used for district-provided programs but most ended up with outside organizations that work with youth, such as $2 million for YMCAs across the state and $2.8 million to Boys and Girls Clubs across the state. Some school systems, such as Nash County, receive a half a million dollars or more for the programs.

Boys and Girls Clubs of America CEO Jim Clark issued a statement Tuesday urging the release of the funds and said 926 Boys and Girls Clubs serving more than 220,000 children and employing about 5,900 people could be forced to close without the money.

"Afterschool and summer learning programs are cornerstones of academic success, public safety, and family stability for millions of young people — but right now, we stand at a dangerous tipping point," Clark said. "The decision to withhold 21st Century Community Learning Center (21st CCLC) funds — despite Congressional approval for FY25 — threatens to unravel a decades-long, bipartisan investment in youth development. For over 20 years, 21st CCLC have helped kids succeed — and the results are clear. Students show better attendance, stronger engagement, and improved academic outcomes, with 70% completing more homework and nearly half overcoming chronic absenteeism."

Clark said families depend on the programs and warned of potentially immediate impacts on them.

"With Independence Day days away, Club sites and camps could shutter mid-season — upending care for working parents and leaving kids without critical safety nets," he said.

Funding for academic enrichment programs topped $37.2 million last year. Those funds can also be used toward improving school conditions and technology use.

Funding for English language education was about $1 million, and funding for immigrant student and family support topped $18 million. The support is designed to engage families and increase immigrant students' access to existing educational opportunities.

The funding program for extra special education funding for disabled children whose families migrate for work provided about $5.4 million last year.