Friday, January 23, 2026

NC ranks last in educational funding effort in new report

North Carolina ranked last among the 50 states and District of Columbia in the latest rankings from the Education Law Center. (Port City Daily/file photo)

NEW HANOVER COUNTY — North Carolina ranked last among the 50 states and District of Columbia in the latest rankings from the Education Law Center. 

Earlier this week, the law center released its Making the Grade 2025 report, which ranks states based on funding level, funding distribution and funding effort. These three factors are determined based on the following: 

  • Level: Cost-adjusted, per-pupil revenue from state and local sources 
  • Distribution: The extent to which additional funds are distributed to school districts with high levels of student poverty
  • Effort: Funding allocated to support public education as a percentage of the state’s economic activity

The latest tranche of data is compiled from the 2022-2023 school year. According to the report, North Carolina dropped to 51st place for funding effort, from 49th in the previous study. 

Both of these metrics earn the state a letter grade of F; it is one of 13 states to earn an F in both categories. According to the report, these states are “not leveraging their economic capacity to better fund public schools” and “raising their effort to be more in line with the national average would significantly raise funding levels.” 

The national effort is 3.1% with a range from 5.4% in Vermont to a low of 2% in North Carolina. The study indicates funding effort declined in about half of states and in most of them, inflation-adjusted investments in education increased, but those increases did not keep pace with growing economic activity, per the study. 

That trend reflects a broader regression in funding levels. The study notes the 2022-2023 school year had 11 fewer progressive states than the previous year, representing the first reversal of progress after a five-year trend towards increasing progressivity among states.
The full report can be viewed here.


Tips or comments? Email info@localdailymedia.com.

At Port City Daily, we aim to keep locals informed on top-of-mind news facing the tri-county region. To support our work and help us reach more people in 2026, please, consider helping one of two ways: Subscribe here or make a one-time contribution here.

We appreciate your ongoing support.

Related Articles