NC now subsidizes the tuition cost for the majority of private school students
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- Majority of NC private school students now receive state-funded vouchers
- Most new voucher recipients were already enrolled in private schools
- Vouchers rose to $432M amid concerns over funding shifts and tuition hikes
A majority of North Carolina’s private school students are now getting a taxpayer funded voucher to help cover their tuition costs, according to an analysis of state data.
Out of the 135,738 students who attended a North Carolina private school in the 2024-25 school year, 80,470 students received a state-funded Opportunity Scholarship. But while the number of voucher students more than doubled this year, a new state report shows North Carolina only saw a 4,508-student increase in private school enrollment.
The data comes after a recent report from the state Department of Public Instruction indicated most new voucher students were existing private school students. Another state report found that 42% of the voucher recipients made too much money to qualify for the program before state lawmakers eliminated income eligibility limits.
“What this is doing is providing a new funding burden for the state, which is to pay tuition for families who are already attending private schools and in many cases have no need for assistance.” Heather Koons, a spokesperson for Public Schools First NC, said in an interview.
But the one-year shift to a majority of the state’s private school families now getting a voucher was praised by school choice groups.
“It’s great that North Carolina is investing in students, regardless of their ZIP code or the school their parents choose,” Mike Long, president of Parents for Educational Freedom in North Carolina, said in an email. “Families are seeing their tax dollars follow their child to the school of their choice. This helps with paying the balances on tuition costs that so many families struggle to pay.”
Eliminating income limits for vouchers
The state has been giving Opportunity Scholarships to help families cover private school costs since 2014. The program was initially promoted by Republican lawmakers as a way to help low-income families pay for private schools to escape low-performing public schools.
But over the past decade, the income eligibility rules were expanded to allow more people to get vouchers. The 2024-25 school year marked the first time that there were no income limits for receiving an Opportunity Scholarship.
Previously, a family of four making $259,750 or more a year would not have been eligible for a voucher.
Family income is only used now by the state to determine the size of the Opportunity Scholarship award. For the 2024-25 school year, individual vouchers ranged from $3,360 to $7,468 per child.
Existing private school students get a voucher
Lawmakers also dropped the requirement that voucher recipients had to have previously been enrolled in a public school. This change opened up the Opportunity Scholarship program to existing private school students
The new eligibility rules fueled a record expansion in the Opportunity Scholarship program. The number of voucher students in the 2024-25 school year was 147% more than the 32,549 recipients the previous year
While there were .47,921 additional Opportunity Scholarship students, there were only 4,508 more private school students statewide
A report a presented in June by the state Department of Public Instruction said only 8% of the new voucher students had attended a public school in the 2023-24 school year. That could indicate as many as 92% of the new voucher students were existing private school students.
“We knew that existing families would use the expanded program and are happy to see families now using a scholarship to gain access to the school of their choice,” Long said. “As for those already enrolled in a private school, good for them for tapping into their tax dollars to help pay for their educational expenses.”
Koons said the North Carolina data confirms what they’ve seen in other states where existing private school students are the ones who primarily benefit from expansion of voucher programs.
“The North Carolina State Constitution requires providing funding for one uniform system of public schools,” Koons said. “That is what our legislators are supposed to be doing with our tax dollars. They’re not supposed to be funding the choices of families who don’t choose to attend public schools.”
State funding soars for private schools
The N.C. State Education Assistance Authority awarded $432.2 million in Opportunity Scholarships in the 2024-25 school year. That’s compared to $185.6 million the previous year.
The sharp increase in voucher recipients meant 156 private schools received more than $1 million in state funding in the 2024-25 school year. It’s largely religious schools that are getting the voucher students.
Some private schools required families to apply for an Opportunity Scholarship. Others gave admission priority to families who applied for one of the vouchers.
The program could expand even more this fall with 40,089 new applications for Opportunity Scholarships. More than $655 million could be spent on the program for the 2025-26 school year.
Private schools raise tuition rates
An analysis by Public Schools First NC found several private schools sharply raised their tuition rates after the state expanded the Opportunity Scholarship program. Public Schools First NC singled out Thales Academy for raising tuition 12% at its 10 North Carolina private schools for the 2024-25 school year.
“These data strongly suggest that North Carolina’s voucher expansion incentivized Thales Academies to increase tuition prices,” Public Schools First NC said in its study. “In other words, Thales Academies (and other private schools) took the opportunity to raise tuition prices when voucher funds became readily available.”
For the 2025-26 school year, Thales is charging $6,725 for elementary school, $6,900 for middle school and $7,000 in high school.
“Tuition at Thales Academy, a non-profit school, is less expensive now than when it started in 2007, adjusted for inflation,” Kelly Ellis, a spokesperson for Thales, said in an email.
It isn’t new that private schools adjust their tuition almost every year, according to Long.
“Many are expanding their classrooms creating more seats to accommodate demand,” Long said. “The yearly adjustments to the per pupil spending needs for public schools is done by our General Assembly without any questions. We support funding in all educational options be done so that all students and teachers have what they need to be successful.”
NC Reality Check is an N&O series holding those in power accountable and shining a light on public issues that affect the Triangle or North Carolina. Have a suggestion for a future story? Email realitycheck@newsobserver.com
This story was originally published July 3, 2025 at 3:02 PM.
