$12M in limbo: CMS faces tough choices as federal education funds withheld

MECKLENBURG COUNTY, N.C. (QUEEN CITY NEWS) — A nationwide freeze on federal education grants is hitting close to home in Charlotte, where Charlotte-Mecklenburg Schools announced that it stands to lose more than $12 million in critical funding.

The U.S. Department of Education and the Office of Management and Budget are currently withholding more than $6 billion in already-approved grants nationwide, and the fallout could be severe, especially for Charlotte-area students and staff.

According to district officials, the ongoing delay is forcing CMS to consider two painful options: either understaff schools or take on $1 million in debt every month to keep operations running.

What’s behind the funding freeze?

The Trump administration said the freeze is part of a review to ensure that the grants align with its broader policy goals. But critics argue the move goes against Congress’s approval of the funds and places schools across the country in financial limbo.

CMS states that President Trump signed a Continuing Resolution (CR) into law in March, which maintained federal education funding at last year’s levels. Based on that assurance, CMS and other districts said they made plans and budgets for the current school year.

Now, with funding held back, CMS leaders said the consequences are real and immediate.

How will this impact CMS?

CMS serves more than 141,000 students across Mecklenburg County, many of whom rely on federally supported programs for academic support, after-school care, and summer learning.

Without the expected funding, CMS said two challenges are emerging:

1. Understaffed classrooms: With a large portion of funds earmarked for instructional support positions, CMS may be forced to cut back on staffing
2. Mounting debt: To fill the gap, CMS would need to take on $1 million in monthly debt, money that will be diverted away from other educational priorities and can’t be recovered

What’s being done?

In a formal letter dated July 10, 2025, the Charlotte-Mecklenburg Board of Education urged the U.S. Department of Education to release the withheld funds immediately.

The U.S. Department of Education and the Office of Management and Budget’s unprecedented action significantly restricts CMS’s ability to use federal, state, and local funding effectively. We urgently request that these critical education funds be immediately released to school districts nationwide.
The Charlotte-Mecklenburg Board of Education

What’s next?

While there is bipartisan concern in Washington over the freeze, it’s unclear how soon, or even if, the funds will be released. In the meantime, CMS and many other school districts across the U.S. remain stuck between shrinking resources and increasing demands.

You can read the full letter here:

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