July 5, 2025

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Rural Schools Get Hit Hard...Again

North Carolina’s rural schools are being hit with another financial blow as
the U.S. Department of Education failed to distribute to public school
districts more than $165 million in federal grants that had already been
allocated by Congress.

New[7] reporting by Kris Nordstrom shows which school districts in North
Carolina stand to lose the most from the U.S. Department of Education’s
decision to withhold funding from five major K-12 grant programs. The
hardest hit counties are all rural counties. Funding ($20 M) for two adult
education programs was also withheld.

On June 30, school districts across the nation were told that they
wouldn’t receive their scheduled July 1 funding distribution even though
the funds were appropriated by Congress and are part of routine
distributions. More than $185 million has been withheld from North
Carolina, including over $165 million for K-12 education programs.

As a result of this funding loss, school districts across the state may be
required to slash student services. These cuts will disproportionately fall
upon rural districts and districts with the greatest share of students
experiencing poverty. The average per-student cut ranges from $84 per
student in city districts to $131 per student in rural districts (image
from K. Nordstrom brief).

The ten districts that stand to lose the most if the funding is not
reinstated are all located in rural counties. A number of these counties
are already struggling with the devastation of Hurricane Helene and other
natural disasters. Estimated funding lost per student follows each
district's name:
* Avery County Schools: $580
* Ashe County Schools: $434
* Polk County Schools: $387
* Graham County Schools: $376
* Whiteville City Schools: $312
* Camden County Schools: $285
* Bladen County Schools: $262
* Cherokee County Schools: $248
* Northampton County Schools: $216
* Tyrrell County Schools: $203

In total, [8]nearly $7 billion was withheld from states across the nation.
The affected programs disproportionally serve students most in need of
support and may devastate programs that rely on federal funds.

Here are the five K-12 programs affected and the funding amount withheld
from North Carolina schools:
* Title I-C ($5,365,426) Migrant education: Funds programs meeting the
special educational needs of children of migrant agricultural workers.
* Title II-A ($67,906,396) Professional development: Increases the
academic achievement of all students by improving the quality and
effectiveness of educators and underserved students’ access to effective
educators.
* Title III-A ($19,338,744) English-learner services: Supports English
Learners in achieving English proficiency, academic excellence, and meeting
state standards.
* Title IV-A ($37,245,499) Academic enrichment: Boosts students’ academic
achievement by increasing the capacity of schools to provide students with
access to a well-rounded education, improving school conditions for student
learning, and expanding the use of technology.
* Title IV-B ($35,719,614) Before- and after-school programs: Supports
low-performing schools by establishing or expanding community learning
centers that provide academic enrichment opportunities during non-school
hours for children, particularly students who attend high-poverty and low
performing schools.

Two programs for adults in North Carolina also had funding withheld: Adult
Basic and Literacy Instruction lost $18,636,144 and Adult Integrated
Literacy/Civics Education lost $1,671,946.

The loss to North Carolina for all seven programs totals $185,874,769.
State lawmakers have not yet finalized next year’s budget; it remains to be
seen how the loss of federal education funds will factor into their
financial deliberations in the coming weeks.

Perhaps they will revisit the $731 million currently allocated for private
school vouchers and direct the money toward public schools instead. Contact
your legislators to find out!

Congress Passes Federal Budget Bill

On July 3, the U.S. House passed the federal budget bill, clearing the way
for Trump's signature. Called the most regressive bill in decades by
numerous critics, the cuts fall disproportionally on the most vulnerable
populations.

The bill cuts hundreds of millions from Medicaid, which is a major source
of federal funding for schools. So in addition to millions of children
losing healthcare, which is devastating for children and families, school
districts will also lose funding.

Schools in North Carolina’s rural communities have a larger share of
students enrolled in Medicaid, so they will face the worst consequences
(Yet ANOTHER hit to rural NC!).

The federal food aid program (SNAP) was also cut. Hungry children have a
harder time learning, so the SNAP cuts will directly harm both the health
and learning of many of North Carolina's children.

When children are enrolled in SNAP, they automatically qualify for free
school breakfast and lunch. When more children at a school qualify for
SNAP, it increases the likelihood that the school will be able to provide
free meals for all students through the [9]Community Eligibility Provision
(CEP).

The federal tax credit voucher program may drain billions of tax dollars
from public coffers. The maximum credit per individual is set at $1,700,
but the $5 billion cap on annual voucher tax credits nationally was removed
by the Senate, so there is no limit in place. However, the program is now
optional, so North Carolina legislators could still keep it from coming to
our state.

We will report more on the federal budget in coming weeks as we learn more
about specific provisions and their impact on North Carolina.

Public Schools First NC: Our Statement on U.S. Congress Passing (H.R.1)
Budget Reconciliation Bill

This past Thursday, the U.S. Congress voted to slash funding to multiple
public education programs that our most vulnerable students and most of our
rural communities rely on to ensure that all students can fairly and fully
access public education. This disastrous and unprecedented legislative act
by the U.S. Congress harms our children. Pleas across America for Congress
to not make these cuts were ignored.

One of the most tragic and callous impacts of the budget bill is that over
500k NC children no longer qualify for school meals (part of the 1.4
million North Carolinians that will lose food assistance through SNAP). No
child can be expected to pay attention in school when they are hungry. Many
of these same children and their families will no longer have health care.
In addition, the devastating cuts to Medicaid funds that provide
school-based health services, reimburse schools for services provided to
students with disabilities and low-income students will further harm our
students.

At the same time, this budget allows for massive tax cuts for the wealthy
and super-wealthy. It also establishes a federal tax credit school voucher
scheme with no spending cap. This is on top of the $731 million that the NC
legislature has already earmarked for private school vouchers in NC.

Study after study shows how vouchers do not provide civil rights
protections, they undermine segregation, decimate public school budgets,
and do not improve student outcomes. You have heard PSFNC use the phrase:
Public education is the cornerstone of our democracy many times. This
federal legislation is clearly intended to weaken and erode our public
schools, which will impact the communities, especially rural communities,
that depend on these economic and social anchors.

Public Schools First NC will continue to fight vouchers and the negative
impact they have on our public schools by providing information to keep
public education and child advocates informed. Over the next weeks, we will
provide details on the portions of H.R. 1 that impact our Pre-K – 12
education programs.

We need your help to make sure this information is widely shared! Please
forward our newsletter to your contacts and urge them to sign up. It is
more critical than ever that we share information with those who value our
public schools, educators, and students.

Please do not hesitate to reach out to us ([email protected])
in the coming months with your questions or suggestions. Together, we will
work to support and protect public education, communities across the state,
and the 1.5 million students and families that rely on our public schools.

[10]Link to Statement Please share!

Legislative and SBE Updates

Governor Stein vetoed several harmful bills this week, sending them back to
the NCGA for potential override votes. We urge you to talk to your
legislators and ask them to UPHOLD the veto.

SB227 "[11]Eliminating DEI in Public Education" defines discriminatory
practices and divisive concepts and clarifies under what conditions public
schools can engage in instruction or discussion of divisive concepts (e.g.
impartial discussion of controversial aspects of history). Governor
Stein’s veto message reads, “Our diversity is our strength. We should not
whitewash history, ban books, or treat our teachers with distrust and
disdain. Rather than fearing differing viewpoints and cracking down on free
speech, we should ensure our students learn from diverse perspectives and
form their own opinions.”

SB254 “[12]Charter School Changes” shifts authority over charter schools
from the SBE to the Charter School Review Board. Governor Stein’s veto
message reads, “Senate Bill 254 is an unconstitutional infringement on the
authority of the State Board of Education and the Superintendent of Public
Instruction. Additionally, it weakens accountability of charter schools
when every North Carolina student deserves excellent public schools,
whether traditional or charter.”

SB558 “[13]Eliminating DEI in Public Higher Ed." adds numerous restrictions
on what is allowable in North Carolina’s universities and community
colleges regarding “divisive” concepts (as defined in the bill). Govern
Stein’s veto message reads, “Our diversity is our strength. We should not
whitewash history, police dorm room conversations, or ban books. Rather
than fearing differing viewpoints and cracking down on free speech, we
should ensure our students learn from diverse perspectives and form their
own opinions.”

HB805 "[14]Prevent Sexual Exploitation/Women and Minors" started as a bill
focused on what’s contained in its title. Governor Stein supported the
original bill However, lawmakers added numerous other provisions tied to
culture war issues such as officially recognizing only two sexes, civil
remedies for gender transition procedures on non-minors, etc. Governor
Stein’s veto message reads (in part) “The initial version of House Bill 805
protected people from being exploited on pornographic websites against
their will. I strongly support that policy, which is a continuation of my
work to protect children from sex abuse, modernize our sex crime
statutes…I stand ready to work with the legislature when it gets serious
about protecting people, instead of mean-spirited attempts to further
divide us by marginalizing vulnerable North Carolinians.”

Please [15]contact legislative leaders and urge them to UPHOLD Governor
Stein's vetoes!

In Case You Missed It

[16]NC now subsidizes the tuition cost for the majority of private school
students

[17]State of Grace "...Grace Christian School is under fire from parents,
faculty for its changing culture and for doubling tuition while leading the
state in NC Opportunity Scholarship funding."

[18]How Trump's sweeping tax and domestic policy bill will affect children
and schools

[19]Judge temporarily halts school vouchers while considering lawsuit (West
Virginia)

Did You Know?

42% of early childhood education teachers in North Carolina rely on public
assistance to meet their basic needs?

58% of NC early childhood educators reported that a child care program
closed in their community within the last year.

Learn more: [20]North Carolina Task Force on Child Care & Early Education
interim report

Words to Remember

"When you take it all together it’s kind of like an assault on children and
families policy-wise. We’re going to see that the effects reverberate well
beyond what we’re even understanding…and schools are going to be on the
front lines."

— Meg Curran, Policy Director, Center on Poverty and Social Policy at
Columbia University in comments about the federal budget bill, H.R.1.

Help us support public schools!

Public Schools First NC is a statewide nonpartisan, 501(c)(3) nonprofit
focused solely

on pre-K to 12 public education issues. We collaborate with parents,
teachers, business and civic leaders, and communities across North Carolina
to advocate for one unified system of public education that prepares each
child for productive citizenship.

[21]DONATE HERE

[22]www.publicschoolsfirstnc.org

Questions? Contact us today at [email protected]

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