Now facing the threat of a likely veto, a measure that would create a new school choice program in North Carolina cleared a final vote in the North Carolina General Assembly on July 30 and now heads to the desk of Gov. Josh Stein.
House Bill 87, the Educational Choice for Children Act, passed the House in a 69-47 vote with two Democrats — Reps. Carla Cunningham of Mecklenburg County and Shelly Willingham of Edgecombe County — joining all Republicans in voting in favor. On July 29, the measure cleared the Senate in a party-line 30-29 vote.
Democrats in the House spoke against the idea.
“We have an opportunity right now today to raise teacher pay, fund classroom resources, and repair crumbling school buildings, but instead, we’re using our political capital and backdoor voucher schemes that provide primarily benefit wealthy donors seeking tax advantages,” said Rep. Julie von Haefen, D-Wake.
Rep. Brian Biggs, R-Randolph, responded by pointing to a version of the state budget approved earlier this year that contains “tremendous teacher raises.”
“I do want to make sure we’re pointing out that we’re framing the argument the right way. This is brings no new cost to our state. These are federal dollars and these are independent private sponsors. This is not any new cost our state,” Biggs added.
The measure would enable North Carolina to take part in a federal tax-credit program authorized under the Big Beautiful Bill Act recently enacted by Congress. The program would be associated with contributions made by individuals to designated Scholarship Granting Organizations (SSOs), which in turn issue stipends to students for private school expenses, including tuition and other allowable costs.
A key feature is that donors receive a dollar-for-dollar reduction in their income taxes, effectively making the donation cost-free. Taxpayers could donate up to $1,700 per year.
The program, set to begin in 2027, allows families earning up to three times the median income for their area to qualify for scholarships. While the legislation provides significant funding — estimated to cost nearly $26 billion through 2034 — its implementation largely depends on whether individual states and their governors opt into the program.
School choice advocates were quick to praise passage of the measure through the General Assembly.
Ryan Cantrell, chief strategy officer of the American Federation for Children, said in a statement, “North Carolina has been a trailblazer in expanding educational options for families, and we are excited to see the North Carolina General Assembly leading once again as they seek to opt in to the newly created federal scholarship tax credit, signed into law by President Trump on July 4th in the One Big Beautiful Bill Act. We commend Senator Phil Berger, Speaker Destin Hall, and legislative leaders for their commitment to school choice, having championed expansion of North Carolina’s Opportunity Scholarship Program and ESA+, and now being the nation’s first movers in seeking to participate in the national school choice tax credit. Every state will have school choice soon.”
Mike Long, president of Parents for Educational Freedom in North Carolina, also expressed enthusiasm, noting, “Despite the uphill battle to bring the federal school choice program to fruition … we are fortunate to have a school-choice friendly legislature … and a bold and transformative leader in Senator Phil Berger. In fact, we are watching Senator Berger’s legacy is being solidified in real time. He is opening the door to a new era for education reform. This bill encourages philanthropy to fuel educational opportunities and empowers parents with the freedom to choose the environment where their child learns best. Anyone who puts students first and values their success will support this bill too.”