NC legislators are putting private schools over most of North Carolina’s K-12 students
North Carolinians want strong public schools where every child gets the education that they are owed in our state Constitution. Yet state lawmakers are once again choosing to use education policy to benefit the wealthy few instead of the well-being of us all.
The first action by the N.C. General Assembly related to the harmful megabill passed in the “One Big Beautiful Bill” this summer was to force the state to participate in the federal school choice tax credit program.
The bill doesn’t fund private school vouchers directly, but it creates huge tax breaks for people who donate money that’s used for vouchers. Under this federal program, the federal government would fully reimburse up a household up to $1,700 for any donation to a nonprofit that then provides scholarships for tuition, fees, or other educational expenses.
The primary beneficiaries will be higher-income taxpayers who can itemize deductions and navigate complex paperwork and systems. And the vast majority, like those who benefit from North Carolina’s universal school voucher program, will already have children enrolled in private schools.
Participation doesn’t impact state revenue — the state already is funding private school vouchers with public dollars to the tune of $625 million annually — but the cost of this policy to the federal budget is not capped. Estimates suggest $3 billion to $4 billion in lost federal revenue each year, with costs rising over time. By comparison, President Trump’s administration only recently committed to make available about $6 billion in federal funding for public schools that had been frozen by the administration.
With the Governor’s veto of the bill, North Carolina’s participation is on hold for now. However, the Governor suggested in his veto message that he might reconsider if rule-making extends eligibility to public school students, who make up the vast majority of children in the state.
But accepting this costly federal tax break for the wealthy comes at a steep price. These giveaways, among the others extended from the 2017 federal tax law, required deep cuts to health care and food assistance — programs that are critical to student success. The resulting shortfalls will affect school programs and services, including school lunch and breakfast.
It’s worth a reminder that amid all the harmful cuts in the megabill passed this summer, funding for universal school vouchers continues. Recent analysis by the NC Justice Center shows the program disproportionately benefits wealthy households and those whose children were already enrolled in private schools — diverting resources from the vast majority of North Carolina’s students in public schools.
As students return to classrooms, legislators should be working on a comprehensive state budget and plan that protects vital programs from these harmful cuts, not piling on more benefits for the wealthy.
