Kentucky, Kansas, and now North Carolina have all joined the federal Scholarship Tax Credit (§25F) by overriding a Democratic governor's veto. With North Carolina's June 3 vote, the legislative-override path is no longer a one-off — it's a recognizable route into the program.
When North Carolina's Senate completed its override of Governor Josh Stein's veto on June 3, 2026, it did more than add one state to the federal Scholarship Tax Credit (FSTC / ECCA / §25F) roster. It confirmed a pattern: in three states now, a Republican-controlled legislature has forced participation in the program over a Democratic governor's objection. Kentucky was first, overriding Governor Andy Beshear's veto of House Bill 1 on March 17, 2026. Kansas followed, overriding Governor Laura Kelly's veto of Senate Bill 361 on April 9, 2026. North Carolina's override of HB 87 makes three.
The override path matters because of how §25F is structured. Most participating states have joined through a gubernatorial “advance election” — the governor files Form 15714 with the IRS to make the state a covered state for 2027. But §25F does not require the decision to come from the governor's office; a state can also opt in through legislation. When a governor vetoes that legislation and the legislature overrides the veto, the state participates with no further action required from the governor. In all three override states, the bill is now law and the SGO designation process proceeds regardless of the governor's stated preference.
The three vetoes shared a common rationale. Beshear, Kelly, and Stein each argued the credit would divert resources from public education and each preferred to wait for the U.S. Treasury Department to finalize the program's rules before committing. Supporters in each state countered that §25F is voluntarily donor-funded rather than a direct appropriation, and that scholarships reach students across public, charter, private, and home-school settings. In each case the legislature had the supermajority needed to override.
For families and prospective Scholarship Granting Organizations, the practical takeaway is that a sitting governor's opposition is not the last word in a state with a determined legislative majority. Kentucky, Kansas, and North Carolina families will all be eligible for scholarships when the program launches January 1, 2027, on the same terms as families in states whose governors opted in voluntarily: K-12 students in households at or below 300% of the relevant Area Median Gross Income, funded by donors who can claim a non-refundable federal credit of up to $1,700 per tax return. It also signals to advocates in other divided-government states that the override route is viable where the votes exist.