The deal was supposed to end a lawsuit filed by the school board in 2019, accusing the city of keeping money meant for public schools, and would offset the district's at least $36 million deficit.

New Orleans Mayor LaToya Cantrell’s administration is backing out of a $20 million deal to bail out the city’s school district and fund a host of programs over the next decade as part of a broader austerity push that could see teacher layoffs and significant cuts across city government.

New Orleans Mayor LaToya Cantrell appears to have decided against honoring a $20 million settlement agreement with the Orleans Parish School Board that was authorized by the City Council.