Trump administration travels to NC to urge Gov. Stein to OK school choice tax credit

Rebecca Noel, The Charlotte Observer on Mar 9, 2026

By clicking submit, I authorize Arcamax and its affiliates to: (1) use, sell, and share my information for marketing purposes, including cross-context behavioral advertising, as described in our Privacy Policy , (2) add to information that I provide with other information like interests inferred from web page views, or data lawfully obtained from data brokers, such as past purchase or location data, or publicly available data, (3) contact me or enable others to contact me by email or other means with offers for different types of goods and services, and (4) retain my information while I am engaging with marketing messages that I receive and for a reasonable amount of time thereafter. I understand I can opt out at any time through an email that I receive, or by clicking here

CHARLOTTE, N.C. — U.S. Secretary of Education Linda McMahon says she wants Gov. Josh Stein to opt into a federal program he previously vetoed.

Congress passed legislation last July establishing the Education Freedom Tax Credit, which allows families in participating states to receive up to $1,700 off their federal taxes for contributions made to organizations that give scholarships to students in grades K-12.

During an event in High Point Monday, McMahon said the tax credit will allow families to “afford essential education services, regardless of their circumstance.”

“We’re all united by a shared belief every child deserves access to an education that equips them to succeed, not one limited by their zip code, family income or government-imposed barriers,” she told reporters Monday.

States have to opt in to the program to participate. McMahon said 27 governors have expressed interest in participating so far.

The North Carolina legislature passed House Bill 87 in 2025, which would add the state to the program. However, Gov. Josh Stein vetoed the bill in August, saying he will opt North Carolina in once the federal government “issues sound guidance.”

The guidance should come this year, according to the fact sheet produced by the Department of Education about the credit. However, there’s not an exact timeline yet.

The credit is for donations made to a valid “scholarship granting organization,” not individual schools. Each participating state will make a list of groups that qualify. The only federal requirement is the groups must use at least 90% of their income on scholarships for education choice programs for K-12 students.

McMahon said any other potential requirements for groups to participate, such as nondiscrimination in what students they consider for scholarships, for example, are up to individual states. House Bill 87 does not include specific provisions related to this or a preliminary list of approved groups.

Any citizen or resident of a participating state who makes a contribution to a group on its state’s approved list can claim the tax credit; there is no income requirement. Taxpayers can begin claiming the credit for contributions made on or after Jan. 1, 2027.

Stein says the government should focus instead on funding public schools.

“School choice is good for students and parents, and I have long supported magnet and accountable charter schools because public schools open doors of opportunity for kids in every county of the state,” he said in an August news release about the veto of HB 87. “Congress and the Administration should strengthen our public schools, not hollow them out. Cutting public education funding by billions of dollars while providing billions in tax giveaways to wealthy parents already sending their kids to private schools is the wrong choice.”

However, he said the program could benefit students in public schools, as scholarships could be used to cover tutoring and other special services for kids enrolled in traditional public schools.

McMahon said the tax credit will not impact local or state funding for public schools, nor will it impact federal grants like Title I and IDEA.

Michael Whatley, who is the Republican nominee for Senate against former NC Gov. Roy Cooper this November, attended Monday’s event alongside McMahon.

Whatley erroneously claimed Cooper was the first governor in the U.S. to reject opting in to the program. In reality, Cooper was no longer governor when President Donald Trump signed the tax credit into law in July.

“We need Governor Stein to opt into this,” Whatley said. “The dollars should follow students whether it is to a public school, a private school, a charter school, or homeschooling.”

Rep. Virginia Foxx, a Republican who represents NC’s 5th congressional district in the northwestern part of the state, was also present. She argued the program is necessary to increase educational opportunities for NC families.

“Without educational freedom, these young men and women and their families find themselves tethered to options that do not meet their unique needs,” Foxx said.

The N.C. General Assembly is currently scheduled to vote whether to override Stein’s veto of HB 87 in April, though the veto override vote has already been scheduled and later withdrawn nine times since September.

_____