On Wednesday the NC House overrode Gov. Josh Stein’s veto of H87: Educational Choice for Children Act (ECCA) that permits North Carolina to participate in a federal school-choice tax credit program passed under the Trump administration’s 2025 One Big Beautiful Bill Act.
The legislation would allow taxpayers to claim a federal tax credit of up to $1,700 for charitable contributions to eligible scholarship-granting organizations (SGOs), beginning in tax year 2027. Those organizations would then use the funds to provide scholarships to students in their states. The U.S. Department of the Treasury is expected to release program regulations soon, with a public comment period likely to continue through October. AASA has submitted comments to the Treasury Department, urging the agency to prioritize innovation and build strong accountability into the program’s design.
The bill now heads to the Senate for consideration. Senate Leader Phil Berger (R-Rockingham) said he anticipates his chamber will take up the measure following next week’s planned break. 31 states have indicated they intend to opt into the program so far.
In August 2025, Gov. Stein said tax benefits shouldn’t come at the expense of funding for public schools. He said even though he was vetoing the bill, he believed the federal program could benefit North Carolina’s public school students and plans to opt into the program after more guidance from the federal government.
NCASA continues to advocate for opportunities to support public schools through this legislation and will keep you informed about any new developments.