North Carolina has become the first state in the United States to approve legislation opting into the Educational Choice for Children Act (ECCA), a federal school choice programme that offers tax credits for donations funding K–12 education scholarships. The bill, passed by the North Carolina General Assembly, now awaits the decision of Governor Josh Stein.The ECCA was signed into law on Independence Day as part of the federal budget reconciliation bill. It provides a 100% federal tax credit of up to $1,700 per year for individuals donating to scholarship-granting organisations. These scholarships can be used by students for tuition at private schools, special education services, tutoring, or other approved educational expenses.First US state to opt in as others watchWith North Carolina being the first to officially opt in, other states are now facing pressure to decide whether to participate. Under the programme, participation must be authorised at the state level before scholarships can be distributed to students residing in those states.According to the Illinois Policy, the bill in North Carolina was approved by the legislature and sent to Governor Stein, who is expected to veto the measure. However, lawmakers believe they have the votes needed to override any veto, as reported by the Illinois Policy.Despite being a federal initiative, the programme is structured to use private funds exclusively, as donations come from individuals or organisations, not from public education budgets. Lawmakers supporting the bill stated that claims suggesting public funds are used to support private schools are inaccurate, as quoted by the Illinois Policy.Supporters urge Illinois to follow North CarolinaIn Illinois, the state government chose not to renew its Invest in Kids tax-credit scholarship in 2023. As a result, over 15,000 low-income students lost access to private school scholarships, according to the Illinois Policy.The ECCA would expand access by allowing scholarship eligibility to families earning up to 300% of the median income in their area. This threshold is broader than Illinois’ previous programme, which was limited to families making 300% of the federal poverty level.Scholarship recipients would be able to attend any type of K–12 school, including traditional public schools, public charter schools, private or religious schools, or be home-schooled. Funds could also be used for instructional materials, standardised test fees, college admission exam fees, dual-enrolment courses, and educational therapies for students with disabilities.Illinois residents could still contribute to students in other statesEven if Illinois does not opt into the ECCA, residents may still donate to support students in other states that have joined the programme. However, it remains unclear which agency in Illinois has the authority to opt into the programme. Governor J.B. Pritzker’s support would be required, but he has publicly opposed similar measures in the past.As reported by the Illinois Policy, Illinois voters had supported the Invest in Kids programme by a margin of three to one before it was ended, while the state’s teachers unions contributed nearly $1.5 million to political campaigns during that time.Academic performance of low-income students raises concernsAccording to data cited by the Illinois Policy, only one in four low-income Illinois students in third through eighth grade can read at grade level. Furthermore, just one in seven is proficient in mathematics. Supporters of school choice policies have pointed to these figures as indicators of the urgent need for alternative education options for underserved families.TOI Education is on WhatsApp now. Follow us here.
