By Jordan Meadows
Staff Writer
North Carolina has found itself at the center of a fierce national debate over the future use of private school vouchers.
A program launched in 2014 to help low-income families access private schooling has now grown into a nearly billion-dollar initiative, driven by aggressive legislative expansion, rising private school tuition, and new opportunities introduced by federal policy.
The state’s Opportunity Scholarship Program was initially underutilized, partly because it required families to meet income thresholds and have children previously enrolled in public schools. To boost participation, the General Assembly in 2021 earmarked $500,000 per year for voucher marketing, then doubled that to $1 million per year in the 2023–25 budget.
More significantly, the 2023 Appropriations Act eliminated income and public school attendance requirements starting in the 2024–25 school year, allowing any family—regardless of wealth—to qualify.
Then, in November 2024, legislators passed House Bill 10, which injected hundreds of millions more tax dollars into the program. North Carolina is now on track to spend nearly $1 billion per year on private school tuition using public funds.
This rapid growth has reshaped the private school landscape: in the 2024–25 school year, the maximum state voucher reached $7,468, and the number of private schools charging tuition between $7,000 and $7,999 rose from 31 to 48 in a single year—strongly suggesting schools are aligning their fees with the voucher ceiling to maximize profit.
In late July 2025, North Carolina was set to become the first to join a new federal voucher program established under President Donald Trump’s “One Big Beautiful Bill.” The program, set to launch in 2027, allows for a nonrefundable, dollar-for-dollar federal tax credit of up to $1,700 for donations to “scholarship-granting organizations.”
These nonprofits will then distribute funds to families for private education expenses, including tuition, tutoring, or homeschool materials. Eligibility is technically income-based, but with a cap of three times the local median income to qualify.
There’s no prohibition against combining these federal vouchers with state vouchers, potentially offering families thousands of dollars in public subsidies for private education. Importantly, the federal law places the power to opt in with governors, not state legislatures.
That legal distinction became a flashpoint in August when Governor Josh Stein vetoed House Bill 87, which would have made North Carolina the first state to officially opt into the federal program. Stein said he supports school choice in principle, but condemned cutting billions in funding from public schools.
Voucher advocates like Mike Long of Parents for Educational Freedom NC say the combination of state and federal aid "empowers families" to choose the best schools for their children. House Speaker Destin Hall called the federal credit a “no-brainer” since it wouldn’t cost the state anything directly. Sen. Leader Phil Berger, R-Rockingham, criticized Gov. Stein’s veto, saying state lawmakers, not the governor, have the power to set the state’s tax policy.
But the programs awaken debate surrounding education and minority groups. When the program began in 2014–15, 51% of recipients were Black and only 27% were white. But as eligibility expanded, that balance reversed. In 2024–25, white students made up 73% of recipients, while Black students fell to just 11%. Income barriers may no longer exist on paper, but other costs—like transportation, uniforms, and tuition not covered by the voucher—still limit access for many families, particularly Black and low-income households.
A ProPublica investigation identified 39 private schools in North Carolina that were likely founded as “segregation academies” during the desegregation era. Twenty of these schools reported student bodies that were at least 85% white, despite being located in racially diverse counties.
For instance, Northeast Academy, located in Northampton County (which is only 40% white), reported 99% white enrollment. Lawrence Academy reported less than 3% Black students in a county that is 60% Black. These schools have collectively received more than $20 million in state voucher funding in the past three years alone.
In addition to racial disparities, many voucher-funded schools have policies that would be illegal in public schools. A 2025 report by Public Schools First NC found that 38% of voucher schools discriminate based on religion, requiring families to adhere to specific faith statements; 18% discriminate based on lifestyle, such as requiring church attendance or abstinence from “immoral behaviors”; 17% discriminate against students with disabilities; 15% openly discriminate against LGBTQ+ students and families; 70% enforce “right fit” policies that allow them to exclude students for subjective reasons.
73% of private schools accepting vouchers are religious, but they receive 86% of total voucher funding, according to data from the NC State Education Assistance Authority. That’s $371 million in 2024–25 alone, compared to just $60 million for non-religious schools. Despite this massive public investment, private schools are not required to provide transportation, free meals, or accept all applicants—requirements that public schools must meet under law.
