Federal Withholding of Education Funds: CMS Faces $12 Million Loss With No Answers

A Promise Broken

On March 8, 2025, President Trump signed into law H.R. 1968 – Full-Year Continuing Appropriations and Extensions Act, 2025, securing roughly $45 billion in funding for K–12 students nationwide. School districts, including CMS, built their budgets in good faith around these funds.

But in a sudden and unexplained move(June 30th we were notified, and funds were suppose to be released July 1st), the U.S. Department of Education announced it was withholding nearly $7 billion, allegedly to review alignment with the “President’s vision.” No additional details, no timeline, and no transparency have been provided.

For Charlotte-Mecklenburg Schools, this equates to $12 million in lost federal support—with devastating implications.


What This Means for CMS

To fill this gap, CMS now faces two unacceptable options:

  • Understaff classrooms and absorb shortfalls for already-hired staff—reducing support for students and overburdening educators
  • Take on $1 million in monthly debt, diverting money from student services and essential educational priorities

This situation isn’t theoretical. It is happening right now.


Why These Funds Matter

Here’s how these federal dollars were supposed to be used:

  • Title I, Part C: Support for migratory students
  • Title II, Part A: Professional development for teachers
  • Title III, Part A: Services for English language learners
  • Title IV, Part A: Academic enrichment and technology
  • Title IV, Part B: (Only portion released—CMS receives no funding here)

These funds help ensure:

  • Students of all backgrounds graduate ready for college, career, or service
  • Schools can attract and retain qualified, supported educators
  • Multilingual students receive language acquisition support
  • Schools offer after-school, summer, and enrichment programs—especially in high-need areas
  • Classrooms can leverage modern technology to enhance learning

Let’s be clear: the students will suffer. Teachers will suffer. Families will suffer.
The refusal to release these funds is not just a bureaucratic delay—it’s an active disruption of our public education system and the absence of this funding directly impacts real students, real teachers, and real families.

Newest Update:

You may have heard that the U.S. Department of Education has started to release some of the previously withheld federal education funds. However, this relief is limited. So far, only Title IV-B funds—meant for 21st Century Community Learning Centers—have been released. Unfortunately, Charlotte-Mecklenburg Schools (CMS) does not receive any money from this funding category, meaning we continue to face a significant shortfall with no resolution in sight.

What CMS Is Doing—and What You Can Do

On July 10th, the Charlotte-Mecklenburg Board of Education sent a formal letter to the U.S. Department of Education and the Office of Management and Budget, urging immediate action to unfreeze the funds.

Now, with legal action underway and thousands of students at risk, we need everyone’s voice.

Here’s how you can help:

  • Contact the U.S. Department of Education and demand full release of all approved education funding
  • Call your federal legislators and ask them to put pressure on the administration to act
  • Share this post and start a conversation in your community—this matters to all of us
  • Support efforts like the lawsuit filed by NC Attorney General Jeff Jackson, which defends our students’ right to a well-funded public education. In response, North Carolina Attorney General Jeff Jackson has filed litigation alongside at least 10 other states and multiple school districts across the country, suing the federal government to release the full $45 billion in education funds that Congress already approved under H.R. 1968.

As a former educator, a CMS parent, and a current board member, I am deeply concerned. This is not a partisan issue—it’s a matter of principle, planning, and promises made. School districts across the country based their budgets on this funding. Now they’re being told to scramble—midyear—with no clarity and no assurances. This funding is not a luxury—it is a necessity. If we allow this decision to stand, we are saying it’s acceptable to gamble with the futures of our children.

It’s not acceptable.

Let’s stand together to demand better.

CMS Releases Plan

This document outlines Charlotte-Mecklenburg Schools’ (CMS) emergency response to the federal government’s decision to withhold over $12.5 million in expected entitlement grants for the 2025–2026 school year. These withheld funds—tied to Title II (teacher support), Title III (English language acquisition), and Title IV (student enrichment)—have forced CMS to implement a temporary stopgap plan that relies on carryover funds, freezes on spending, and cuts to services, training, and supplies. While CMS has taken immediate steps to minimize disruption to students and staff, the district warns that this temporary solution is not sustainable and that future cuts in 2026–2027 could significantly impact classroom instruction, educator retention, and student success if federal funding is not restored.

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