North Carolina House overrides Gov. Stein's veto of FSTC opt-in bill (HB 87)
On May 20, 2026, the North Carolina House voted 73-46 to override Governor Josh Stein's veto of House Bill 87, which would opt North Carolina into the federal Scholarship Tax Credit (FSTC / ECCA / §25F). The Senate must still vote to complete the override; Republicans hold the votes to do so.
On May 20, 2026, the North Carolina House of Representatives voted 73-46 to override Governor Josh Stein's veto of House Bill 87, the bill that would opt North Carolina into the federal Scholarship Tax Credit (FSTC) — the program known to Congress as the Educational Choice for Children Act (ECCA) and codified at IRC §25F. The override is not yet complete: the North Carolina Senate must also vote to override before HB 87 becomes law over the governor's objection. Republicans hold enough seats in the Senate to do so without Democratic support.
Governor Stein had vetoed the bill, citing concerns about federal education funding cuts and a preference to wait until the U.S. Treasury Department finalized the program's rules. Stein has said he is open to participating in the program, but in a way that would “benefit public schools, as well.”
Supporters framed the override as a win for families across all educational settings. Rep. Neal Jackson (R-Moore) said the program “supports public school students, charter school students, private school students, and home school students. It allows taxpayers to voluntarily fund student scholarships, and it gives more students access to quality educational environments.” House Speaker Destin Hall called the vote “another major win for North Carolina students and parents.” Opponents disputed that framing: Rep. Julie von Haefen (D-Wake) argued the “federal voucher program will significantly decrease federal tax revenue and will have a huge impact on our federal budget.”
If the Senate completes the override, North Carolina would become the third state where the legislature forced participation against the governor's wishes through a veto override, following Kentucky and Kansas. North Carolina families would then be eligible for scholarships through state-designated Scholarship Granting Organizations (SGOs) when the federal program goes live on January 1, 2027. Under §25F, scholarships go to K-12 students in households at or below 300% of the relevant Area Median Gross Income, and donors anywhere in the country can claim a non-refundable federal income tax credit of up to $1,700 per tax return for contributions to a qualifying SGO. As of late May 2026, the Senate had not yet voted.