Education Policy

North Carolina Governor’s Veto on School Choice Tax Credit Undermines Parental Freedom and Fiscal Responsibility

By Economics Desk | August 7, 2025

While North Carolina faces a budget impasse, Gov. Josh Stein vetoes a federal tax credit program designed to expand school choice—favoring bureaucratic control over empowering families and fiscal prudence.

In the midst of North Carolina’s ongoing budget deadlock, Governor Josh Stein has signed a stopgap spending bill that barely scratches the surface of pressing financial challenges but vetoed legislation vital to expanding school choice through a federal tax credit program. This decision raises critical questions about Washington-aligned Democrats’ priorities versus those of hardworking American families who deserve educational freedom.

Why Does Expanding School Choice Scare the Establishment?

The GOP-controlled General Assembly sought to enact a forward-looking policy allowing North Carolina to opt into the federal tax credit program established under President Donald Trump’s last major legislative success. The plan would incentivize donations to scholarship organizations aiding K-12 private school access—directly empowering parents rather than expanding government bureaucracy. Yet Governor Stein vetoed this measure, labeling it unnecessary before federal guidance is released, despite the program’s clear promise to broaden education options without costing state revenue.

This veto plays into the familiar pattern of Democratic opposition to parental empowerment in education and reluctance to embrace market-based solutions that respect individual liberty and local control. Instead of advancing policies aligned with America First principles like national sovereignty and economic opportunity, Stein’s action prioritizes political caution over tangible benefits for families seeking alternatives to underperforming public schools.

A Band-Aid Budget Leaves North Carolinians Behind

Meanwhile, Stein approved a short-term budget patch that fails to deliver meaningful pay raises or fully fund Medicaid expenses, threatening essential services and frontline workers. Health officials warn that this patchwork funding approach will force cuts in optional services or provider reimbursements—exacerbating healthcare challenges for vulnerable Americans.

For citizens struggling with inflation and uncertain economic conditions, this fiscal indecision further undermines confidence in government stewardship. The failure to prioritize long-term budgeting reflects Washington-style dysfunction that compromises sovereignty by saddling states with inadequate resources instead of promoting prosperity through sound fiscal management and policy innovation.

Governor Stein’s contradictory stance—blocking a no-cost, innovative education program while signing insufficient spending bills—calls into question his commitment to common-sense conservatism and America First values that champion liberty, security, and opportunity.

Is it too much to ask for leaders who will put families first, reduce bureaucratic overreach, and ensure taxpayer dollars are responsibly managed? The General Assembly stands ready to override this veto and chart a path toward genuine reform respecting both parental rights and fiscal responsibility.