The Invisible Siphon: How HB 87 Introduces "Tax-Credit Scholarships" to NC

They don’t call the school choice movement a "movement" for no reason. It is known that vouchers are prominent in NC, but other school choice supporters have been pushing for a more discrete way to siphon money from public schools.

Introducing Tax Credit Scholarships / House Bill 87 (Educational Choice for Children Act).

The Educational Choice for Children Act was initially vetoed by Gov. Josh Stein, but as of June 3rd, 2026, both the House and the Senate have voted to override Stein’s veto and make HB 87 a law.

How It Works

An individual or company can donate money to a non-profit Scholarship Granting Organization (SGO).

The Math: If you owe the government $1,500 in taxes and donate $1,500 to an SGO, your tax bill becomes $0.

The SGO then takes your donation and writes checks that are to be used for private school tuition, tutors, homeschool supplies, and other educational expenses.

The Per-Pupil Reality

It is technically true that the state education budget is not being directly affected by these tax credit scholarships. However, public schools in NC are largely funded on a per-pupil basis, meaning that each student brings with them state money for the school’s operations.

When families receive these tax-credit scholarships and pull their children out of the public school system, the local public school immediately loses the state operational money that was attached to those students. The physical school building, the energy bills, and the fixed staffing costs stay exactly the same, but the school's total revenue drops.

Education and Democracy

It seems families are upset with how public schools are teaching their children, or they feel their kids’ needs aren't being met, so the plan for some families is to take their kids out of public schools. Honestly, it is a fair response.

However, I want to urge people to think about the vital role public schools play in the health of our nation’s democracy. The foundation of democracy is participation from everyone, regardless of wealth, social status, or background.

Education is the powerful tool that enables individuals to participate by providing them with the necessary knowledge and skills to engage with society. Public education is truly the foundation of our democracy. That is why it is important to keep our students in public schools and to advocate for more public school support instead of looking for backdoor exits.

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