RALEIGH — The North Carolina General Assembly sent a bill that would opt the state into President Donald Trump’s school choice program to Gov. Josh Stein, who then vetoed the measure.
In his veto message of House Bill 87, Stein said school choice is “good for students and parents” and noted he has supported magnet schools and some charter schools but said “Congress and the Administration should strengthen our public schools, not hollow them out.”
Stein continued, using similar language to that of his predecessor Roy Cooper, claiming that public education funding was being cut by “billions of dollars” and that “providing billions in tax giveaways to wealthy parents already sending their kids to private schools is the wrong choice.”
“However, I see opportunities for the federal scholarship donation tax credit program to benefit North Carolina’s public school kids,” Stein wrote. “Once the federal government issues sound guidance, I intend to opt North Carolina in so we can invest in the public school students most in need of after school programs, tutoring, and other resources. Therefore, HB 87 is unnecessary, and I veto it.”
Senate Leader Phil Berger (R-Eden), who has led on school choice options in the state, responded quickly to Stein’s veto.
“Either you support school choice, or you don’t,” Berger said in a statement. “Gov. Stein could have made North Carolina a leader in school choice and parental freedom by signing the Educational Choice for Children Act, but instead, he’s attempting to usurp the General Assembly’s authority to set tax policy.”
Berger went on to say that he looks forward to holding Stein accountable and “overriding his veto to ensure North Carolina can participate in President Trump’s signature school choice initiative.”
House Bill 87 was created through a committee substitute that flew through the Senate Rules Committee on July 29 and went on to a Senate floor vote. The measure passed by a vote of 30-19, with no Democrats voting in favor.
North Carolina is the first state to opt into the program, according to Senate Leader Phil Berger (R-Eden).
“North Carolina has been a leader in parental school choice for more than a decade,” Berger said in a press release issued after the bill passed. “By opting into President Trump’s signature school choice initiative, we’re giving North Carolina’s families access to additional resources for sending their child to a school that best meets their individual educational needs. The school choice movement in our state strengthens our public schools and provides families with robust educational options.”
The next day, the House concurred with the Senate’s substitution by a vote of 69-47, also with no Democratic support.
House Democrats opposed the bill, claiming it would rob public schools of money and only benefit the “rich.”
The Trump tax credit program is a federal tax credit contained in the One Big Beautiful Bill and could be stacked with North Carolina’s Opportunity Scholarship program.
Under the new program, starting in 2027 U.S. citizens and residents can claim up to $1,700 annually for cash contributions to scholarship granting organizations (SGOs), which in turn fund scholarships for eligible K-12 students in participating states.
Students from households with incomes up to 300% of their area’s median gross income are eligible. According to the U.S. Census Bureau data for 2023, the average median family income in North Carolina was $70,804, putting the eligibility range at approximately $212,400.
The credit applies to items like tuition and books. Any unused credit can be carried forward for up to five years.
The SGO must meet specific requirements, such as being a 501(c)(3) organization, maintaining separate accounts for qualified contributions, spending at least 90% of its income on scholarships, and prioritizing students who previously received or have siblings who did.
Ryan Cantrell, chief state strategy officer for American Federation for Children — a school choice advocacy group — applauded North Carolina lawmakers for acting quickly.
“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,” said Cantrell.
“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.”
The American Federation for Children had backed the credit alongside Parents for Educational Freedom in North Carolina (PEFNC), an organization in the state that has supported school choice options for more than 20 years.
“Despite the uphill battle to bring the federal school choice program to fruition, it is now the law of the land,” said PEFNC President Mike Long. “The requirement for states to opt-in was added at the 11th hour and put a barrier in front of many states, including ours. However, we are fortunate to have a school-choice friendly legislature — and a bold and transformative leader in Senator Phil Berger — that is taking swift action to bring public policy to life for families throughout North Carolina.”
