Overview
- The House voted 73-46 on May 20 to override Gov. Josh Stein’s veto of HB 87, sending the measure to the state Senate for a likely final vote.
- Two lawmakers who left the Democratic Party after losing March primaries, Reps. Carla Cunningham and Nasif Majeed, joined all House Republicans to supply the votes needed for the override.
- If the Senate concurs, HB 87 would opt North Carolina into a federal program that lets donors claim up to a $1,700 dollar-for-dollar federal tax credit for gifts to Scholarship Granting Organizations, which then issue K-12 scholarships for tuition, tutoring, therapies and other school expenses.
- Key implementation questions remain because federal regulators have not finalized guidance and the State Education Assistance Authority must adopt state rules by July 1, 2026 or within 120 days of any Treasury guidance before the program starts in 2027.
- Critics warn the credit could reduce federal tax revenue and divert support from public schools with independent estimates of very large costs, while supporters say the plan expands parental choice and is paid for through federal, not state, tax rules.