NC Senate Overrides Vetoes, Pumps Millions into School Choice Expansion

RALEIGH — The North Carolina Senate passed House Bill 10 on Thursday, allocating $248 million in nonrecurring funds to eliminate the Opportunity Scholarship waitlist for the current school year and $215.5 million recurring for awards in the 2025-26 fiscal year[2]. The bill also includes $24.7 million recurring to clear the ESA+ waitlist for children with disabilities, alongside $95 million for K-12 enrollment growth and $64 million for community colleges[2]. Republicans, led by Sen. Michael Lee (R-New Hanover), overrode five vetoes from Democratic Gov. Josh Stein this session, marking the 25th such override in the biennium and advancing school choice despite opposition[2]. The legislation builds on North Carolina's rapid expansion of voucher programs, with the Opportunity Scholarship serving over 106,000 students this year through the NC State Education Assistance Authority (NCSEAA)[6]. Awards vary by income tier: for a family of four in 2025-26, households earning up to $59,478 receive up to $7,686 per child, while those above $267,651 get up to $3,458[6]. Stein's proposed budget would phase out the program, potentially displacing 60,000 students back to public schools, a plan he called a 'wind down' to prioritize public education funding[6]. Separately, the legislature voted in late July to enroll North Carolina in a new federal school choice tax credit via House Bill 87, the Educational Choice for Children Act, offering up to $1,700 annual credits for donations to scholarship organizations — though Stein vetoed it on Aug. 6, citing conflicts with public school cuts[1][4]. Scholarship groups must prioritize returning students and siblings, target families under 300% of area median income (over $300,000 in high-cost areas), and spend 90% of funds on K-12 scholarships[1]. Federal estimates peg the program's cost at $3-4 billion yearly, with no cap, raising concerns over revenue impacts[1][4]. Supporters, including congressional backers like Sens. Thom Tillis and Reps. Virginia Foxx and Patrick McHenry, argue the initiatives save taxpayer money without new burdens, drawing from models like Arizona's[3]. Critics, including Stein's office, highlight the $4 billion diverted over a decade to unregulated private schools since 2023's income-cap elimination[7]. With funding set to reach $520 million by 2032 for universal education savings accounts, North Carolina's programs rank second nationally after Florida[5].