CMS to Recoup $12.5 Million After Federal Education Funds Are Unfrozen

CMS to Recoup $12.5 Million After Federal Education Funds Are Unfrozen

CHARLOTTE, N.C. — Charlotte-Mecklenburg Schools (CMS) will reclaim $12.5 million in federal education grants after the U.S. Department of Education reversed its freeze on billions in funding, marking a major financial win for the district and schools nationwide.

The decision came late Friday when the Education Department announced it would release all remaining funds that had been suspended under a review by the Trump administration. These grants are critical to programs supporting adult literacy, English language learning, and student enrichment.

North Carolina Wins Back $165 Million

The total amount unlocked for North Carolina is approximately $165 million, according to a statement by Attorney General Jeff Jackson, who led a legal challenge against the freeze. Jackson said the release “should end weeks of uncertainty” and allow districts to move forward with planning and hiring ahead of the new school year.

“My absolute best wishes to our state’s 1.5 million students who are ready to make this their best year yet,” Jackson added.

CMS Board Reacts with Cautious Optimism

CMS leaders welcomed the news, expressing relief and gratitude to state and federal allies who advocated for the release of funds.

“We are cautiously optimistic that these grant funds will continue to support public education in the future,” the CMS Board said in a public statement.

The board thanked North Carolina’s Democratic congressional delegation, Republican supporters across the aisle, Superintendent of Public Instruction Mo Green, and Attorney General Jackson. They also credited community partners, students, and families for raising their voices.

What the Funding Freeze Meant

The Trump administration had halted over $6 billion in education spending on July 1, citing a review to ensure alignment with federal priorities. The funding freeze jeopardized key student support services, with many school districts preparing to cut back on:

  • Teacher development
  • Personalized instruction
  • Supplemental classroom resources

Organizations like the YMCA and Boys & Girls Clubs of America had warned of scaling back or even closing programs without restored funding.

Last week, the Education Department began releasing $1.3 billion of the money specifically earmarked for after-school and summer programs, but the full release now ensures broader relief across all impacted areas.

What’s Next for CMS?

With the funds restored, CMS is expected to resume key programs without interruption for its 141,000 students. Board Chair Stephanie Sneed expressed hope that the momentum will continue beyond this one-time restoration.

“Our students will be better supported in forging a bright future for their community,” said Sneed.

The Office of Management and Budget has finished reviewing the grant programs and is preparing to distribute funds to states starting next week, completing a months-long battle over educational funding and political accountability.

Do you believe school funding should ever be withheld for political reviews? Share your thoughts with us at SaludaStandard-Sentinel.com and tell us how your local schools have been affected.

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