On June 3, 2026, the North Carolina Senate voted 30-19 along party lines to complete the override of Governor Josh Stein's veto of House Bill 87, enacting the bill into law and opting North Carolina into the federal Scholarship Tax Credit (FSTC / ECCA / §25F). It is the third state to join through a legislative veto override.
On June 3, 2026, the North Carolina Senate voted 30-19 to override Governor Josh Stein's veto of House Bill 87, completing a two-chamber override that began when the House voted 73-46 on May 20. The Senate vote fell strictly along party lines, with all Republicans in favor and all Democrats opposed. With the override complete, HB 87 becomes law over the governor's objection and North Carolina is now opted 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.
Because the program was enacted by legislative override rather than gubernatorial election, North Carolina's participation does not depend on any further action by Governor Stein. The state will designate qualifying Scholarship Granting Organizations (SGOs), and North Carolina families become eligible for scholarships 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 cash contributions to a qualifying SGO.
North Carolina becomes the third state to join the program through a veto override, following Kentucky (House Bill 1, overridden March 17, 2026) and Kansas (Senate Bill 361, overridden April 9, 2026). In each case a Republican-controlled legislature forced participation against a Democratic governor's veto. Senate Republicans noted the vote was the latest in a long run of successful overrides of Governor Stein this session.
Stein had vetoed HB 87 citing concerns that the federal credit would reduce tax revenue available for public education and a preference to wait for final U.S. Treasury rules before committing. Supporters countered that the program is voluntarily donor-funded and reaches students across public, charter, private, and home-school settings. The override adds North Carolina to a roster of roughly 30 participating states ahead of the 2027 launch, even as Treasury's proposed regulations implementing §25F remain pending.