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NC House overrides Stein veto on federal scholarship tax credit

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NC House overrides Stein veto on federal scholarship tax credit

May 20, 2026 | 2:45 pm ET
By Lynn Bonner
NC House overrides Stein veto on federal scholarship tax credit
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The NC House voted to override Gov. Josh Stein's veto of a bill allowing a federal tax credit for vouchers on May 20, 2026. (Photo: Lynn Bonner/NC Newsline)

The Republican-led state House mustered 73 votes to override Gov. Josh Stein’s veto of a bill allowing the state to participate in a federal tax-credit scholarship program. 

Unaffiliated Reps. Carla Cunningham and Nasif Majeed, Mecklenburg County House members who dropped their Democratic party affiliation this year, voted with Republicans to override the veto.  The vote was 73-46 to override, with all House Democrats voting against it. 

The Senate must vote to override Stein’s veto in order for House Bill 87 to become law despite his objection. 

Rep. Neal Jackson (R-Moore) said the tax credit will not cost the state anything. 

“It expands educational opportunities for all students,” he said. 

Under the program, donors to scholarship granting organizations will be eligible for tax credits of up to $1,700, according to the Library of Congress. 

Scholarship recipients must come from families that meet income limits and use the scholarships on qualified expenses.

In his August 6 veto message, Stein criticized the weakening of support for public schools for the benefit of private school vouchers. He said he’d reconsider opting the state into the program if there was an opportunity for public schools to benefit.

NC Gov. Stein vetoes federal voucher tax credit opt-in, signs stopgap state budget

Rep. Julie von Haefen (D-Wake) argued Wednesday for sustaining the veto, saying the tax credit will drain the federal treasury of billions of dollars that could go to public education.

“This bill prioritizes private interests over public responsibility,”  von Haefen said.  “It expands the system with little accountability while public schools cry out for investment.”

Majeed voted to override Stein’s veto, even though he voted against the bill last year. 

“Looking at it from a prospective now, it will afford people who give a gift to that fund a tax break, and it will go to all education overall, charter schools, private schools, and where the needs are,” Majeed said after the vote.