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North Carolina Supreme Court Dismisses Landmark School Funding Case, Reversing 2022 Order

The North Carolina Supreme Court, now with a Republican majority, voted 4–3 on April 2, 2026 to throw out the decades‑long Leandro school‑funding lawsuit, reversing a 2022 ruling that had allowed a trial judge to order hundreds of millions of dollars in new education spending. Chief Justice Paul Newby wrote that the case, which began in 1994 over funding in low‑income districts, had morphed into a "full‑scale" attack on the General Assembly’s control over the education system and that the trial court’s authority effectively ended when the suit expanded statewide. The decision wipes away a lower‑court order that the state owed $678 million toward the first two years of an eight‑year, multibillion‑dollar remedial plan aimed at boosting teacher pay and recruitment, expanding pre‑K, and improving services for students with disabilities. Republicans who control the legislature will no longer be legally bound to that plan as they craft a new state budget, while Democratic Gov. Josh Stein condemned the ruling as ignoring precedent and enabling lawmakers to "deprive another generation" of their constitutional right to a sound education. In a sharp dissent, Justice Anita Earls warned that allowing the state to escape judicial scrutiny turns constitutional guarantees into "words on paper" with no real force, and advocates online are already framing the decision as a major setback for school‑funding equity and a warning sign for similar adequacy cases in other states.

State Education Funding and Courts Separation of Powers and State Constitutions

📌 Key Facts

  • North Carolina Supreme Court issued a 4–3 ruling on April 2, 2026 dismissing the long‑running Leandro school‑funding lawsuit.
  • The decision overturns a 2022 state high‑court ruling that had upheld a trial judge’s power to order state agencies to spend additional taxpayer money to remedy education inequities.
  • A trial judge had previously calculated that the state owed $678 million for the first two years of an eight‑year remedial plan to improve teacher pay, pre‑K access and services for students with disabilities.
  • Chief Justice Paul Newby said the case evolved into a "full‑scale" challenge to the General Assembly’s education system and that the trial court’s authority to continue hearing it had ceased.
  • Democratic Justice Anita Earls dissented, arguing the ruling lets the state avoid judicial accountability for violating students’ constitutional education rights.

📊 Relevant Data

In the 2024-25 school year, the 4-year cohort graduation rate for North Carolina public schools was 90.9% for White students, 85.7% for Black students, 82.8% for Hispanic students, >95% for Asian students, 84.6% for American Indian students, and 86.0% for students of two or more races.

2024–25 Cohort Graduation Rate — North Carolina Department of Public Instruction

For the North Carolina Class of 2024, average ACT composite scores were 19.7 for White students, 16.4 for Black students, 16.3 for Hispanic students, 24.5 for Asian students, 16.9 for American Indian students, and 17.4 for students of two or more races.

Facts & Figures — BEST NC

In North Carolina, school districts serving the most students of color receive $1,106 or 10% less state and local revenue per student than districts serving the fewest students of color.

The State of Funding Equity Data Tool - North Carolina — Education Law Center

In 2021, 13.5% of North Carolina's public schools were intensely segregated schools of color, which also had high rates of poverty.

North Carolina Schools Have Lost Significant Progress in Racial Integration — NC State University News

In the United States, the average Black-White gap in cognitive ability tests, such as IQ tests, is approximately 1 standard deviation, consistent across various assessments.

Facing the Facts About Test Score Gaps — Qeios

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