NC Senate Advances Federal Voucher Opt-In Amid Stein Veto Fight

RALEIGH, N.C. (Day.News) — The North Carolina Senate voted 30-19 on July 29, 2025, to pass House Bill 87, the Educational Choice for Children Act, opting the state into a federal tax credit program for private school scholarships. The bill, which cleared the House 69-47 the next day, authorizes the State Education Assistance Authority to certify Scholarship Granting Organizations, enabling donors to claim up to $1,700 in tax credits for contributions funding private tuition, tutors and supplies. Senate leader Phil Berger, R-Rockingham, called it a pioneering move, making North Carolina the first state to join the program under the federal Big Beautiful Bill Act, effective for tax years after Dec. 31, 2026.

Gov. Josh Stein vetoed HB 87 on Aug. 6, 2025, arguing it funnels money to private schools while public education faces billions in cuts. The veto follows a pattern: In November 2024, lawmakers overrode Stein's veto of House Bill 10, enacting Session Law 2024-55 with $463.46 million in new funding for the Opportunity Scholarship Program — retroactive to July 1, 2024 — boosting next year's allocation to $625 million and capping at $825 million by fiscal year 2032-33. The law also added $24.7 million recurring for Personal Education Student Accounts for children with disabilities, rising to $83 million by 2032-33, and $95 million for public school enrollment reserves.

Public school advocates decried the expansions. NC Association of School Administrators Executive Director Katherine Joyce labeled HB 10's passage a 'dark day,' warning it siphons funds from under-resourced public schools in districts like Wake and Mecklenburg counties, forcing county tax hikes. HB 87 lacks new accountability for participating private schools, mirroring criticisms of the Opportunity Scholarship as one of the nation's least transparent voucher programs. With the Republican-led General Assembly able to override vetoes, as shown with HB 10, the fate of federal tax credits hangs in the balance as of May 2026.