A massive increase in applications for North Carolina’s school voucher program has led to most higher-income families not receiving financial assistance for the upcoming school year. The Opportunity Scholarship program, which saw a six-fold increase in new applicants to 72,000, does not have enough funding to accommodate all of them. Despite the General Assembly removing income caps on the program, there is simply not enough money to support all of the new applicants seeking subsidies for private K-12 education. Lawmakers also opened first-time grants to current private school students in 2023.
State law mandates that the program must first offer scholarships to existing voucher holders, of which more than 32,500 students received them this year. Next in line for scholarships are the lowest-income applicants, such as a family of four making a maximum of $57,720. Families earning up to twice that amount are prioritized in the group after that. Over 13,500 applicants from the lowest-income tier were awarded new vouchers for the maximum amount of $7,468 per child, with a deadline of April 19 to accept the award. However, there is no funding available for higher income groups like families making over $115,440 annually.
Lawmakers allocated $293.5 million for the program for the 2024-25 school year, with plans in the current state budget to increase public money transfer to scholarship funds over the next decade. By fall 2031, over $500 million is expected to be allocated annually for the program. There is still a possibility for the General Assembly to increase funding for next year’s vouchers to assist more students. The budget-adjustment session is set to begin on April 24. Democratic Gov. Roy Cooper, a critic of the scholarships, has called for a moratorium on expanding the program until public schools are fully funded. However, with Republicans holding narrow veto-proof majorities in the House and Senate, the future direction of the program remains uncertain.
With the surge in applications and limited funding available, only some applicants in the next income tier are expected to receive scholarships. These applicants are eligible for $6,722 per child, with the number of awards depending on how many applicants from the lowest income bracket accept their offers. As of now, higher income families, such as those making over $115,440 annually, will not receive financial assistance through the program due to the lack of available funding. The current allocation of funds is not enough to support the overwhelming demand for private K-12 education subsidies in North Carolina.
Given the financial constraints and high number of applicants, the Opportunity Scholarship program is facing challenges in meeting the needs of all families seeking assistance. The program, which has seen a significant increase in applications and funding, is unable to accommodate all higher-income families due to limited resources. The future of the program remains uncertain, as lawmakers may need to consider increasing funding to support more students in the upcoming school year. With the budget-adjustment session approaching, there may be an opportunity to address the funding shortages and ensure that more families are able to receive financial assistance for private K-12 education in North Carolina.
