New Orleans City Council sues Cantrell over school funding deal

The New Orleans City Council has joined the Orleans Parish School Board in suing Mayor LaToya Cantrell's administration over a failed $20 million school funding deal. The lawsuit stems from a 2019 claim that City Hall illegally withheld over $130 million in taxes, leading to a settlement agreement in November 2024 that Cantrell's administration recently withdrew from, citing financial constraints. This decision has sparked concerns about potential teacher layoffs and cuts to vital student services due to the school district's $36 million budget shortfall. The council is reviewing the mayor's expenditures and has proposed freezing her travel budget as a countermeasure. Cantrell argues the city cannot afford the settlement and blames the district's financial mismanagement for the shortfall, while the council criticizes her spending priorities.