North Carolina Supreme Court Dismisses Longstanding Education Funding Lawsuit

Ruling upholds legislative control over education spending, overturning lower court order to direct funds to address inequities.

Apr. 3, 2026 at 7:18am

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A high-contrast silkscreen print of a school pencil repeated in a grid of bright neon colors, conceptually representing the ongoing debate over education funding and policy in North Carolina.The North Carolina Supreme Court's ruling upholds the legislature's control over education funding, limiting the courts' ability to mandate spending on equity programs.Today in Raleigh

The North Carolina Supreme Court has thrown out a longstanding lawsuit over education funding in the state, ruling 4-3 to dismiss the case. The decision reverses a 2022 ruling that had given a lower court judge the authority to order the state to direct taxpayer money to address education inequities. The court's Republican majority argued the judiciary had overstepped its bounds, while the dissenting justices said the ruling ignored established precedent and would deprive students of their constitutional rights.

Why it matters

The ruling solidifies the legislature's control over education funding decisions in North Carolina, limiting the ability of the courts to intervene and mandate specific spending on programs to improve teacher pay, expand pre-K, and support students with disabilities. This could have long-term implications for education quality and equity across the state, especially in lower-income districts.

The details

In 2022, a North Carolina court had ordered the state to spend $678 million over two years as part of an eight-year, multibillion-dollar plan to address education inequities. However, the state Supreme Court has now dismissed the entire Leandro education funding lawsuit, which was first filed in 1994. The court's Republican majority, led by Chief Justice Paul Newby, argued the judiciary had overstepped its bounds by expanding the scope of the original case. The dissenting justices said the ruling ignored established precedent and would deprive students of their constitutional rights to a sound basic education.

  • The North Carolina Supreme Court heard oral arguments in the case more than two years ago.
  • The court issued its ruling on Thursday, April 3, 2026.

The players

North Carolina Supreme Court

The state's highest court, which issued the 4-3 ruling to dismiss the longstanding Leandro education funding lawsuit.

Paul Newby

The Republican chief justice who authored the majority opinion, arguing the judiciary had overstepped its bounds in the case.

Anita Earls

The Democratic justice who dissented, saying the ruling ignored established precedent and would deprive students of their constitutional rights.

Josh Stein

The Democratic governor of North Carolina, who was the state's attorney general when the 2022 ruling was issued.

Phil Berger

The Republican state Senate leader, who said the court's decision confirms that education policymaking should be done through the legislative process.

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What they’re saying

“The Supreme Court simply ignored its own established precedent, enabling the General Assembly to continue to deprive another generation of North Carolina students of the education promised by our constitution.”

— Josh Stein, Governor of North Carolina

“Allowing the state to escape judicial scrutiny for constitutional rights violations through its behavior during litigation quickly turns constitutional rights into words on paper — morally compelling but functionally useless.”

— Anita Earls, Justice, North Carolina Supreme Court

“Liberal education special interests have improperly tried to hijack North Carolina's constitutional funding process in order to impose their policy preferences via judicial fiat. Today's decision confirms that the proper pathway for policymaking is the legislative process.”

— Phil Berger, Republican State Senate Leader

What’s next

The North Carolina General Assembly will now be responsible for crafting the state's education spending proposal, without the court-ordered remedial plan. Close to 40% of the state's annual budget goes to K-12 funding, and attention will turn to how lawmakers address education inequities through the legislative process.

The takeaway

This ruling reinforces the legislature's control over education funding decisions in North Carolina, limiting the courts' ability to intervene and mandate specific spending on programs to improve equity. While the dissenting justices warned this would deprive students of their constitutional rights, the majority argued the judiciary had overstepped its bounds. The long-term impacts on education quality and access remain to be seen as the state's political leaders grapple with these issues through the legislative process.