Trump releases all $165M in frozen education funds, says NC Attorney General Jeff Jackson

NC Attorney General Jeff Jackson says the Trump administration has reversed course on the $165 million it was withholding from North Carolina’s public schools.  

[Editor’s Note: This story was updated to reflect breaking news Friday afternoon.]

Attorney General Jeff Jackson said Friday afternoon that the Trump administration has now reversed course on the entirety of the $165 million it was withholding from North Carolina schools.

“The Department of Education has reversed course and is releasing all frozen funds – $6.8b nationally, $165m for North Carolina – after we filed suit last week,” Jackson wrote on X. “This ends weeks of uncertainty. Our schools can now plan and hire for a strong year ahead. My absolute best wishes to NC’s 1.5m students who are ready to make this their best year yet.”

Earlier this week, the Trump Administration announced that it was unfreezing more than $1 billion. But Jackson and other states filing suit against the federal government said they were still seeking what the states were owed.

“Good news: The Ed Department says it’s giving states the after-school funding it unlawfully froze,” Jackson said in an X post Monday, “That’s about $36m of the $165m in education funding they froze for NC. We’ll see them in court for the rest.”

The initial freeze was announced on June 30, just a day before the new fiscal year for state governments, despite having already been approved by Congress. The Department of Education stated these programs were under review to ensure they aligned with the President’s priorities. 

On July 14, Jackson joined 24 other attorneys general to sue the Department of Education to protect the funding already promised to NC public schools. Although a portion of funding is set to be restored, Jackson said on social media that he is not backing down. 

(Graphic via NC Attorney General Jeff Jackson’s office)

Here’s what the Trump education cuts were meant to go to

The restored funding is for 21st Century Community Learning Centers (CCLC), which supports before- and after-school programs. According to a statement to ABC News from a senior administration official, the programmatic review of CCLC was completed, and “guardrails” have been implemented to ensure these funds are not used in ways that violate Executive Orders.

No further details were provided about these guardrails at this time.

Four other programs, which account for the roughly $129 million other funds frozen in NC, are still under review. These programs support teacher professional development, English language acquisition, academic enrichment, and the education of migratory children.

North Carolina Superintendent of Public Instruction Mo Green said while the state respects the federal administration’s right to review the programs, its legal obligations to serve students remain unchanged. The timing of the freeze, he said, creates “significant and unnecessary” challenges for schools, community organizations, and the children who rely on these programs.

Due to this timing, school districts had already completed their budgets for the fiscal year, which incorporated the promised funding. A timeline for the other programmatic reviews is yet to be shared.  

“I support efforts, including this nationwide lawsuit, to resolve this situation quickly and ensure that North Carolina students receive the support they need and deserve and that our federal government agreed to provide them,” Green said in a press release about the lawsuit.