North Carolina Senate leader Phil Berger (R-Rockingham) walks onto the chamber floor on June 25, 2025. (Photo: Galen Bacharier/NC Newsline)
North Carolina will participate in a federal tax-credit scholarship program after the state Senate voted to override Gov. Josh Stein’s veto Wednesday. It’s the ninth veto lawmakers have overridden in Stein’s first term.
The override vote on House Bill 87: Educational Choice for Children Act was 30-19 Wednesday afternoon, with all Republicans in favor and all Democrats present opposed.
The measure is now law. House Republicans overrode Stein’s veto last month after picking up the votes of unaffiliated Reps. Carla Cunningham and Nasif Majeed.
Five veto overrides remain on the North Carolina House calendar, where they have sat for months, though it is unclear whether House Republicans can muster enough support to pass them. All deal with contentious political issues, ranging from immigration to gun rights to diversity, equity and inclusion.
NC Republican legislators have veto overrides on immigration, guns, DEI in their sights
The new law opts North Carolina into a federal tax credit program allowing donors to scholarship-granting organizations to deduct up to $1,700 on their taxes.
“A lot of folks have just kind of tied this to private schools or other types of nonpublic-type institutions. That’s really not true,” said Sen. Michael Lee (R-New Hanover). “This really applies for all children in all schools, and it’s pretty clear.”
Sen. Jay Chaudhuri (D-Wake) urged his colleagues to uphold the governor’s veto because of a lack of clarity around the policy from the federal government.
“We are being asked to opt into a program built on an unfinished foundation,” Chaudhuri said. “Is it wise for us to layer in a new federal program when we don’t have any established rules?”
In a statement Wednesday, Stein said he had opposed the amendment because he was awaiting federal guidance on whether the tax credit could be applied to donations toward nonprofits aimed at supporting public school students.
“We need to put more public dollars into our public schools, and I will continue to do everything I can to provide more support for public school kids,” Stein said. “We are working on a solution to make it easy for North Carolinians like me who want to direct their federally reimbursed donations to scholarship-granting organizations that directly benefit public school students.”
After the Senate session on Wednesday, Senate President Pro Tem Phil Berger attributed Democratic opposition to the bill to “Trump Derangement Syndrome,” noting that more than 30 other states had already opted into the program. “I understand President Trump’s in favor of it, but that shouldn’t be the reason to be opposed.”
“The benefit for this is for students, and obviously, there’s a benefit to taxpayers who are willing to make the contribution, but there’s no hit to the state budget,” Berger said. “There’s no indication that the money would somehow deplete funds that are already available or would be available at the state level for any sort of education.”
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