July 26, 2025

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Respond Boldly to this Moment: Choose Public Education

Public education advocates across the US and North Carolina are angry and
so are we. There can be no other response than outrage at the reckless and
unnecessary withholding of federal funds, already appropriated by Congress,
for our nation’s public schools. Anger is the appropriate response when we
know children will be harmed.

So what can we do? How can public education advocates, and advocates for
children, respond to this moment? We must turn toward our public schools,
choose our public schools, and show up for them!

We are the best hope for public schools. We play a crucial role in
supporting and improving public education. A strong and effective public
school system relies not just on government, but on the active engagement
and commitment of everyone in the community – parents, teachers, students,
community and business leaders, and concerned citizens.

Those that seek to destroy public education as the cornerstone of our
democracy must be met by an American public that says, “NO!”

What does this mean?
* It means parents enrolling their children in their local school
district, getting involved at their schools, and volunteering time and/or
resources.
* It means community members and businesses signing up to volunteer with
their local school district in tutoring or mentoring programs.
* It means joining the local PTA. Even those who feel their time is
limited can join their local PTA without signing up to volunteer or sit on
a committee. And the good news- PTA dues are very affordable and you do not
have to have a child in the school to join; they welcome community members
and grandparents!
* It means urging state lawmakers to vote for educator salaries and
policies that support public schools.
* It means showing up to school board meetings, knowing who is on the
ballot and their positions on public education, and participating in every
election.
* It means being an informed voter and electing pro-education leaders.

Let us send a crystal clear message- one that makes headlines: the people
of America choose public education. Every time voters have had the chance
to weigh in on vouchers at the ballot box, VOUCHERS LOSE BIG. Just last
year CO, KY, and NE [7]all rejected private school vouchers.

The people of America choose our public schools, ALL our nation’s children,
and our public school teachers. Let there be no ambiguity in how we respond
to this moment: let us SHOW UP for and in our public schools NOW.

Imagine and then actualize a back-to-school season where school districts
across the US see surges of new children and families enrolling in our
public schools. Dedicated educators are there to welcome you with open
arms, ready to provide love and care, and quality instruction to our
nation’s children.

We can meet this moment with a response that lets privatizers and
lawmakers know that the public chooses public schools and we will not allow
any person, political party, ideology, or policy to destroy the very
cornerstone of our democracy: our public schools.

Impact of the Federal Budget Bill H.R. 1

Effective 2026-27 School Year

While the state waits for lawmakers to return to Raleigh to finalize
budgets for 2025-26 and 2026-27, districts face the challenge of opening
schools with no budget and with millions in federal funds frozen by the
U.S. Department of Education.

They must also grapple with the challenges caused by the federal budget
bill (H.R. 1) signed into law on July 5. The[8] Congressional Budget
Office’s evaluation of H.R. 1 projects that it will increase the national
deficit by $3.4 trillion over the next 10 years, largely due to tax cuts
that reduce revenue by about $4.5 trillion and major spending increases for
immigration crackdowns and defense spending.

To offset the cost of tax cuts and increased spending, the budget makes
some major cuts that will affect students, families, and education.

Medicaid The budget cuts about $1 trillion from Medicaid, the federal
program that provides health insurance coverage to parents and children who
are low-income and to people with disabilities.

Currently, children between 6 and 18 are eligible for Medicaid (health
insurance coverage) if their family meets the income requirement of no more
than $138% of the federal poverty level (i.e., below $36,156 for a family
of 4). New administrative requirements may result in already stressed
families being pushed out of the program along with their children.

More than [9]3 million North Carolinians were enrolled in Medicaid as of
February 2025 including 32% of our state’s rural population. Across the
state, an estimated 600,000 North Carolinians could lose health coverage
due to Medicaid cuts. If people lose coverage and delay healthcare or
forego medical care until they face an urgent medical crisis, overall costs
will rise. Without the assurance of Medicaid payments, many rural hospitals
risk closing or scaling back services, further depriving rural families of
adequate medical care.

Medicaid is also a major source of funding for K-12 schools. Schools
receive money to help provide services for students enrolled in
[10]Medicaid and also students with disabilities. When students lose
Medicaid coverage, they lose access to healthcare and also lose educational
support.

Supplemental Nutrition Assistance Program (SNAP) cuts. SNAP is a federally
funded program run through the U.S. Department of Agriculture’s (USDA) Food
and Nutrition Service (FNS) agriculture department. Currently, the federal
government covers 100% of the cost of benefits while states administer the
program with some federal funding support. In North Carolina the North
Carolina Department of Health and Human Services (NCDHHS) administers SNAP.

To reduce federal spending, H.R. 1 will require states to pick up some of
the program costs starting in 2028. This shifts the burden to states that
may be unable to absorb the costs. According to Governor Stein, NC would be
required to pay $420 million, putting the state at risk of completely
shutting down the program.

Children who qualify for SNAP are automatically enrolled in federal school
nutrition programs, so losing SNAP coverage also puts their school meals at
risk.

More than 1 million North Carolinians are food insecure, including 1 in 6
children. A hungry child is more likely to struggle in school, so ensuring
food security by making food readily available to all children is an
obvious way to improve outcomes for all.

Student Loans. Federal Student Loan program changes may make higher
education out of reach for many families, especially low-income families.
The new budget introduces borrowing caps for graduate and Parent Plus loans
as well as undergraduate loans, reducing the amount of money available to
students.

The bill also eliminates federal subsidized loans for undergraduates.
Currently, the subsidized loans don’t accrue interest while the student is
in school. Under the new rules, interest will accrue over the life of the
loan, adding to the overall cost for the borrower.

Eliminating subsidized loans and capping loan amounts could increase the
overall cost of college for many students. However, the bill also expands
Pell Grant eligibility to [11]short-term workforce training programs that
meet specific quality metrics.

New Federal Voucher Program. With the chronic failure of vouchers at the
ballot box (0 wins, 17 losses), state lawmakers have pushed them on
taxpayers through state legislation. In H.R. 1, federal lawmakers followed
the states’ lead by including a voucher program in the budget bill.

The federal tax credit allows individuals to donate up to $1,700/year to an
organization that provides private school tuition vouchers to families.
Donors will receive a 100% tax credit from the federal government. Typical
charitable donations function as charitable deductions (not tax credits),
which means the donor can subtract the amount of the donation from their
taxable income. The charitable deduction process results in a smaller
financial benefit to the donor than the new federal voucher tax credit. As
a result, donors may be incentivized to choose the voucher program instead
of another organization, reducing income for traditional charities.

Legislative and SBE Updates

The NCGA convenes again next week. The [12]House convenes at 10:30 a.m. and
the [13]Senate at 3:00 p.m. Neither chamber has bills listed for action on
its meeting dashboard but votes to overturn Governor Stein's vetoes is
likely to be on the agenda.

Check the [14]legislative calendar for further updates.

Read our [15]Week in Review for information about bills that made crossover
and may still see action in the NCGA.

[16]Stein has vetoed 14 bills from the state legislature this year. Each
chamber will review seven of those vetoes, sending them across to the other
chamber if overridden. Some may be added to legislative calendars for a
veto override.

Below are key bills we are watching. Please [17]contact your legislators
and urge them to uphold the Governor's veto.

HB 805 “[18]Prevent Sexual Exploitation/Women and Minors” started as a bill
focused on what’s contained in its title. Governor Stein supported the
original bill However, lawmakers added numerous other provisions tied to
culture war issues such as officially recognizing only two sexes, civil
remedies for gender transition procedures on non-minors, etc. Governor
Stein’s veto message reads (in part) “The initial version of House Bill 805
protected people from being exploited on pornographic websites against
their will. I strongly support that policy, which is a continuation of my
work to protect children from sex abuse, modernize our sex crime
statutes…I stand ready to work with the legislature when it get serious
about protecting people, instead of mean-spirited attempts to further
divide us by marginalizing vulnerable North Carolinians.”

SB 254 “[19]Charter School Changes” shifts authority over charter schools
from the SBE to the Charter School Review Board. Governor Stein’s statement
reads, “Senate Bill 254 is an unconstitutional infringement on the
authority of the State Board of Education and the Superintendent of Public
Instruction. Additionally, it weakens accountability of charter schools
when every North Carolina student deserves excellent public schools,
whether traditional or charter.”

SB 227 "[20]Eliminating DEI in Public Education” defines discriminatory
practices and divisive concepts and clarifies under what conditions public
schools can engage in instruction or discussion of divisive concepts (e.g.
impartial discussion of controversial aspects of history). Governor
Stein’s veto message reads, “Our diversity is our strength. We should not
whitewash history, ban books, or treat our teachers with distrust and
disdain. Rather than fearing differing viewpoints and cracking down on free
speech, we should ensure our students learn from diverse perspectives and
form their own opinions.”

SB 558 “[21]Eliminating DEI in Public Higher Ed” also adds numerous
restrictions on what is allowable in North Carolina’s universities and
community colleges regarding “divisive” concepts (as defined in the bill).
Govern Stein’s statement reads, “Our diversity is our strength. We should
not whitewash history, police dorm room conversations, or ban books. Rather
than fearing differing viewpoints and cracking down on free speech, we
should ensure our students learn from diverse perspectives and form their
own opinions.”

SB 50 – [22]Freedom to Carry Act (Permitless Carry): Would allow
18-year-olds with no training or background check to carry hidden, loaded
handguns in public spaces like restaurants, parks, or concerts.

HB 193 - [23]Guns in Private Schools: Would allow teachers and volunteers
with just 8 hours of training per year, written permission by the private
school administrator, and a concealed carry permit to carry concealed
handguns on private school grounds.

Other Vetoed Bills Affecting K-12 Education:

* [24]HB 171 Equality in State Agencies/Prohibition on DEI.
* [25]HB 402 Limit Rules With Substantial Financial Costs.
* [26]HB 549 Clarify Powers of State Auditor.
* [27]SB 153 North Carolina Border Protection Act.
* [28]SB 416 Personal Privacy Protection Act

Ohio Court Strikes Down Vouchers

Another defeat for voucher supporters came in June when an Ohio state court
ruled that the state’s universal voucher program is unconstitutional. The
three main points cited by the court bear striking resemblance to North
Carolina, suggesting that our voucher program also violates our state
constitution.
1. By providing private schools with over $700 million in public funds
through the voucher program, the OH state legislature created a separate
system of nonpublic schools that, unlike public schools, do not accept all
students in violation of the state constitution, which authorizes only a
single system of common schools.
2. By not fully funding public schools, while simultaneously spending
large sums on vouchers…the OH state legislature failed to secure a thorough
and efficient system of common schools as required by the state
constitution.
3. The OH voucher program provides state funding directly to private
religious schools…In addition to receiving direct payments from public
funds, these private religious schools are free to discriminate against
students on the basis of race, religion, LBGTQ+ status or disability.

North Carolina’s legislators spent [29]more than $432 million on vouchers
in 2024-25 and are scheduled to spend [30]$731 million in 2025-26. Article
IX of the state constitution explicitly states that it is the duty of state
and local government to provide a “uniform system of free public
schools…wherein equal opportunities shall be provided for all students.”
Like Ohio’s private schools, North Carolina’s private schools are free to
discriminate in admissions in a number of areas ([31]read our report).

[32]READ MORE

In Case You Missed It

[33]First day of school! Hundreds of year-round students in Durham return
to school

[34]AG Jackson calls for quick action on school funding freeze as CMS
announces budget measures

[35]North Carolina A&T football team to help get kids ready for new school
year

[36]Legal experts weigh in on the implications of the 2025 Supreme Court
term for K-12 education

The FY25 Funding Freeze Finally Over

In an totally unnecessary action, the Trump administration withheld $7
billion from U.S. public schools. Last week, NC Attorney General, Jeff
Jackson, joined other states to sue for the release of these funds.

On Friday, July 25th, the Trump administration releases billions it
withheld from schools. Lawmakers of both parties had lobbied to release the
funds, which support English-language learning programs, teacher training
and academic enrichment. This is good news but it is important to remember
that this delay in the funding caused tremendous anxiety and upheaval in
local school districts across the U.S. for no good reason.

Don't Miss These Great Reads!

There's still time to get a great book, enjoy some summer reading, and help
support our work! Over the past few years we have partnered with some
incredible authors to share their work with you.

Our conversations with many of them can be viewed on our [37]YouTube
channel.

If you donate [38]$50 or more, we will send you a book of your choice. You
will receive a great book and your donation is tax-deductible!

Learning Happens Here Field Trip Fund

The "Learning Happens Here Field Trip Fund" is a program of the North
Carolina Department of Natural and Cultural Resources (DNCR), in
partnership with PBS North Carolina (PBS NC), that provides reimbursements
to public schools throughout North Carolina to engage in enriching,
experiential field trips at DNCR's 100+ locations around the state!

The Learning Happens Here Field Trip Fund will help ensure students from
all regions of the state have the opportunity to engage in memorable
educational experiences while cultivating a deeper understanding and
appreciation of North Carolina’s rich history, culture, arts, science and
natural resources. By providing financial support through reimbursements
for schools to visit DNCR locations around the state, the Learning Happens
Here Field Trip Fund empowers students to connect to what it means to live
in and love North Carolina, ultimately helping to cultivate our state’s
future leaders and innovators.

[39]LEARN MORE AND APPLY HERE

Words to Remember

"Millions of families of color as well as poor whites stand to lose as they
truly have no choice other than to enroll their children in underfunded,
segregated schools, public, private, or charter. Choice has provided a
safety net for some but the majority are in peril."

— Jon Hale, The Choice We Face p. 165

Help us support public schools!

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.

[40]DONATE HERE

[41]www.publicschoolsfirstnc.org

Questions? Contact us today at [email protected]

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