State & Local News
North Carolina Restores Education Funding
March 11, 2026
Attorney General Jeff Jackson of North Carolina secured a temporary restoration of $2.5 million in federal education funds to public schools under the Full-Service Community Schools (FSCS) program in March 2026. This action follows the unlawful termination of a larger $50 million federal grant by the U.S. Department of Education in December 2025, which is currently subject to ongoing litigation. The restored funds provide immediate financial relief to schools while the legal process continues.
- Why this matters: Procurement and grant management professionals in education should be aware of the funding restoration as it impacts budget planning and program continuity for North Carolina public schools.
- The temporary funding reinstatement signals potential resumption or renegotiation of federal grants pending litigation outcomes.
- Organizations involved in delivering services under the FSCS program may experience changes in contract funding levels and should prepare for possible adjustments.
- Stakeholders should maintain communication with North Carolina Department of Justice contacts for updates on funding status and procurement opportunities.
This is a good outcome for our studentsโbut not the final step in our fight. Schools and students will continue to get much-needed funding they were promised for the time being while we continue this case.
— Attorney General Jeff Jackson
Agencies
U.S. Department of Education, North Carolina Department of Justice
Contracts
$2.5 million, $50 million