July 1, 2026 3:11 am

North Carolina Supreme Court Ends Longstanding Education Funding Case

The NC Supreme Court ended litigation on education funding, keeping budget decisions with the legislature, not judges.
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North Carolina Supreme Court Dismisses Longstanding Education Funding Lawsuit

The North Carolina Supreme Court has dismissed a lengthy legal battle concerning education funding, effectively maintaining the legislature’s authority over budgetary decisions. The 4-3 decision was driven by Republican justices who overturned a 2022 ruling that empowered a lower court judge to allocate taxpayer funds to address persistent educational inequities.

The 2022 decision, under a Democratic majority, had allowed a trial judge to determine the state owed $678 million to implement parts of an extensive plan aimed at improving teacher recruitment, salaries, pre-kindergarten programs, and support for students with disabilities over two years of an eight-year framework.

Chief Justice Paul Newby, in the recent ruling, stated that the case evolved from a modest lawsuit about one county’s education spending into an extensive critique of the state’s entire educational system. Newby emphasized that the judicial interventions had exceeded appropriate bounds, leading to the dismissal of the case.

The decision, which came after over two years of oral arguments, means that the Republican-controlled General Assembly is not bound to follow the remedial plan while drafting state budgets, including the current delayed budget.

Democratic Governor Josh Stein, previously North Carolina’s attorney general during the 2022 ruling, must now work to persuade lawmakers and use his veto power to advocate for increased spending on teacher salaries and educational programs. In a statement, Stein criticized the court for ignoring established precedent, jeopardizing the educational rights guaranteed by the state constitution.

The ruling saw dissent from two Democratic justices and one Republican. Justice Anita Earls, a Democrat, argued that the decision focused more on procedural issues than the impact on students, suggesting it undermines constitutional rights by limiting judicial oversight.

As attention shifts to the upcoming state education budget, the General Assembly, which reconvenes this month, faces scrutiny over its allocation of nearly 40% of the state’s $30 billion annual budget to K-12 education. Senate leader Phil Berger remarked that the court’s decision reaffirms the legislative process as the proper channel for policy-making, criticizing attempts by “liberal education special interests” to influence funding through judicial means.

Opponents of the GOP’s education spending highlight state-funded scholarships for private school students as evidence of the potential to increase public school funding.

The legal dispute originated in 1994 when school districts from low-income regions and families accused the state of failing to provide adequate education funding, violating the North Carolina constitution. Known as the “Leandro” case, named after a student involved in the lawsuit, the Supreme Court’s prior rulings in 1997 and 2004 affirmed the constitutional mandate for all children to receive a “sound basic education.” Critics argue this issue remains unresolved.

In 2022, the court’s Democratic majority concluded that prior Supreme Court decisions, coupled with constitutional rights and legislative inaction, created an exceptional situation that justified Judge David Lee’s authority to allocate funds without specific legislative approval.

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