January 29, 2026

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Action Alert: Stop the Federal Voucher Tax Credit Scheme

Last summer, Congress passed a nationwide school voucher scheme buried inside the One Big Beautiful Bill Act (H.R.1). This program would redirect federal tax dollars to private schools and leave public schools across the country with fewer resources and deeper budget cuts.

Governors now hold the power to opt their states into this pipeline, even though most families have never heard a word about it.

In North Carolina, state lawmakers sidestepped the bill’s opt-in requirement by passing House Bill 87(Educational Choice for Children Act), which required the state to adopt the federal voucher program. Governor Stein vetoed it. In his veto message, he said he would wait to make a final decision until the guidance for the program is released. 

If governors opt in, private schools and religious institutions will receive public resources without having to follow civil rights protections that every public school must honor. Students with disabilities, LGBTQ+ students, multilingual learners, and students of color already face discrimination and exclusion under state-level voucher programs. Federal vouchers will only increase that harm, causing public schools to face even deeper cuts.

The federal voucher program allows families wealthy enough to donate to private schools to claim dollar-for-dollar federal tax credits that drain the federal revenue pool for education and other essential services. Families would be able to stack these funds on top of existing state voucher programs, creating a massive diversion of dollars away from public schools that destabilizes districts, eliminates services, and accelerates school closures. States like Arizona, Florida, Iowa, Arkansas, Indiana, and others that have tax credit voucher programs already know how devastating these programs become when the door is opened just a crack.

No governor should gamble with their state’s public schools. New Mexico and Oregon have already opted out, and many other states have not committed. But without public pressure, more governors may join the states preparing to opt into this federal voucher scheme.

We all need to urge Governor Stein to reject the federal voucher program before it drains our state’s public schools of critical resources even more than our current voucher programs are draining them.

The federal government should never be allowed to bankroll discrimination, weaken civil rights protections, and siphon public funds into private hands. Families deserve better than a two-tiered school system that rewards privilege and denies opportunity.

In the coming weeks, governors will make their decisions, and the public has very little time to intervene. This is exactly why the voucher lobby is pushing so hard: if they can get governors to quietly opt in before communities mobilize, they will have locked in a nationwide voucher pipeline for years. We cannot let that happen.

No governor should volunteer their state to participate in a program that destabilizes public schools and gives private institutions a blank check. If they do, billions of tax dollars will flow into private institutions that face little oversight and serve only a fraction of students.

This is the moment to make it clear that families, educators, and voters will not tolerate a federal voucher takeover of our public schools.

Together, we can stop this federal voucher pipeline before it causes more harm to North Carolina’s children.

Contact Governor Stein and urge him to reject the federal voucher program! 

Senator Bernie Sanders (I-Vt.), Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions (HELP), just released a new report finding that the Trump administration’s school privatization agenda threatens our nation’s public schools and harms working-class students, students with disabilities and students from diverse religious backgrounds.

President Trump’s so-called “Big Beautiful Bill” created the nation’s first federal school voucher program at a cost of up to $51 billion a year — more than it currently spends on the Title I program serving low-income students and the Individuals with Disabilities Education Act (IDEA) combined.

“President Trump and his billionaire campaign contributors have been working overtime to create a two-tier education system in America: private schools for the wealthy and well-connected and severely under-funded public schools for low-income and working-class students. That is unacceptable,” Sanders said. “This report makes clear that vouchers are being used to benefit private schools that reject students because they have a disability or because of their religion and benefit some of the wealthiest families in America. Trump’s voucher program will only make a bad situation even worse.”

To understand the potential impact of Trump’s voucher program on students across the country, the report analyzes private schools currently receiving vouchers through state-level voucher programs — a first-of-its-kind review across 11 states, 111 entities that administer school vouchers (known as “scholarship granting organizations” or SGOs) and over 1,600 affiliated private schools.

 

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Public Schools First NC is a statewide nonpartisan, 501(c)(3) nonprofit focused solely

on pre-K to 12 public education issues. We collaborate with parents, teachers, business and civic leaders, and communities across North Carolina to advocate for one unified system of public education that prepares each child for productive citizenship.

Questions? Contact us today at [email protected]