The North Carolina General Assembly overrode the governor's veto and passed into law a measure that allows the state to participate in a federal Educational Freedom Tax Credit (EFTC) program.
The HB 87, known as the Children's Educational Choice ActIt encourages donations to organizations that provide school scholarships, including for private schools.
What does the federal program consist of?
Through the EFTC program, North Carolina taxpayers can now receive a tax credit of up to $1,700 per tax return in exchange for donations to nonprofit organizations that provide educational scholarships.
It also states that the North Carolina State Educational Assistance Authority will be in charge of administering and publishing the list of participating organizations once the measure takes effect in 2027.
These selected organizations will then be able to allocate the funds to: scholarships for private schools, tuition, tutoring, educational materials and other primary and secondary education expenses authorized by federal law.
This federal tax credit program was approved by the “One Big Beautiful Bill” Law, enacted by the administration of President Donald Trump.
Supporters of the measure claim it expands the educational options and provides families with greater access to educational opportunities. Critics argue that it functions as a tax benefit that primarily benefits higher-income families.
Voting and the legislative process
The General Assembly reached the supermajority votes needed to override Governor Josh Stein's veto.
The House of Representatives had a vote of 73-46. Former Democratic Representatives Carla Cunningham and Nasif Majeed, now independentThey voted in favor of this measure.
Subsequently, the Senate, where Republicans hold a stronger majority, moved forward with a 30-19 vote. This step completed the legislative process, solidifying the law.
Related: A measure that would affect public education in North Carolina is one step away from becoming law.
Governor's Response
North Carolina Governor Josh Stein criticized the override of his veto, arguing that the legislature acted before receiving “solid guidance from the federal government” on the program.
Stein stated that he vetoed the measure in August 2025 also due to concerns about redirecting public funds toward private education programs.
“This legislature has placed North Carolina second lowest in the nation in spending per student in public schools,” Stein said in a statement.
“We need to allocate more public funds to our public schools, and I will continue to do everything I can to provide more support to public education students,” he added.
Stein said his administration is exploring ways to redirect those donations to support programs for public school students. However, he indicated he will await further federal guidance before announcing details.
Other pending vetoes
The General Assembly may still consider overriding the governor's veto on a total of 5 additional measures.
One of them, SB 153, would expand the cooperation of state agencies with the Immigration and Customs Enforcement Service (ICE, in English).
Three of these measures are related to eliminating Diversity, Equity, and Inclusion (DEI) requirements in schools, universities, and the public sector. The other proposal seeks to eliminate the state permit requirement for concealed carry.
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