RALEIGH — At a Monday press conference held in High Point, U.S. Education Secretary Linda McMahon urged North Carolina Gov. Josh Stein to enter state into the Trump administration’s Education Freedom Tax Credit program.
The press conference was held at the Phoenix Academy Primary School Library.
As part of the One Big Beautiful Bill, the program offers a federal tax credit of up to $1,700 for individuals contributing to scholarship-granting organizations (SGOs), which must be a 501(c)(3) organization.
“I’m here today because I believe it is unfortunate that North Carolina Gov. Stein is preventing families in the Tarheel State from taking advantage of the support this measure will provide, such as access to scholarships for tuition and tutoring, specialized services, homeschool materials, cutting edge technology, or even after school supports to keep kids on track,” McMahon said.
Joining McMahon at the event were Congresswoman Virginia Foxx (R-Banner Elk), who sits on the House Education Committee, state Sen. Steve Jarvis (R-Davidson) and Michael Whatley, the Republican candidate for the state’s U.S. Senate seat.
“The Education Freedom Tax Credit isn’t some distant idea,” McMahon said. “It’s a homegrown solution that puts North Carolina families in charge of their children’s education.”
McMahon refuted some of the claims Stein has made about the program.
“Contrary to Gov. Stein’s claims, the tax credit doesn’t take a single dollar away from public schools,” said McMahon. “It raises additional funding for education by stimulating private donations by federal tax incentives — including those students who remain in public schools.”
She added the program “builds directly” on the state’s “thriving Opportunity Scholarship program,” which gives funding to students to attend the private school of their choice, with a prioritization on low-income households.
McMahon remarked that the Education Freedom Tax Credit goes beyond the state’s scholarship program, allowing students in traditional public schools to receive scholarship funds without changing schools.
“The Trump administration is your ready partner. Opt In,” McMahon said near the closing of her remarks.
Whatley spoke briefly, saying the tax credit program was important not just for North Carolina but the entire country as well.
“It is ridiculous that the legislature moved immediately to be the first state to opt into this tremendous program,” he said while blaming former Gov. Roy Cooper, his opponent for U.S. Senate, for rejecting the idea.
Last year, Senate Leader Phil Berger (R-Eden) ran House Bill 87, the Educational Choice for Children Act, to opt the state in. The bill quickly passed and was sent to Stein, who vetoed the it a week later.
“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,” Stein wrote in his veto message. “Therefore, HB 87 is unnecessary, and I veto it.”
The guidance mentioned by Stein was issued last fall. Stein did not respond to North State Journal’s requests for comment on his veto claim that he would opt the state in following such guidance.
“The fact is we need Gov. Stein to opt into this,” Whatley said. “Dollars should follow students whether it is to a public school, a private school, a charter school or homeschooling.”
Foxx echoed McMahon’s remarks on the program and education as vital to student success.
“It’s a perfect example of providing opportunity for students and families,” said Foxx. “And it’s truly unfortunate that students and families in our state are being denied that.”
On the same day as her press event, McMahon issued an opinion article on the tax credit in the North State Journal, focusing on Stein’s inaction.
“North Carolina remains on the sidelines while 27 other states have already opted in,” wrote McMahon. “This isn’t leadership; it’s partisan delay dressed up as caution.”
Last month, a coalition of union-linked organizations and nonprofits ran a campaign urging the remaining governors, including Stein, not to opt into the program. Stein’s office did not respond to North State Journal’s request for comment on the campaign.
North State Journal has again reached out to Stein’s office for comment about McMahon’s visit, and a spokesperson issued the following statement:
“Governor Stein continues to await final guidance from the U.S.Treasury and the IRS about the federal tax credit for contributions to Scholarship Granting Organizations that HR1 established. Depending on federal guidance, there could be potential opportunities for the federal tax credit program to benefit North Carolina’s public school students – which would factor into the Governor’s decision.
“The Governor has long supported magnet schools and accountable charter schools because public schools open doors of opportunity for kids in every corner of the state. He believes that school choice is good for students and parents, provided appropriate measures are in place to ensure accountability and prevent discrimination.”
