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 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, 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 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.

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 "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 “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 “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 "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 contact legislative leaders and urge them to UPHOLD Governor Stein's vetoes!

In Case You Missed It

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

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."

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

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

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: 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.

Questions? Contact us today at [email protected]