The maximum voucher amount allowed is $4,200, not to exceed the private school’s actual tuition and fees. The vouchers may be used for tuition, transportation, equipment or any other items required by qualifying private schools. Total funding was increased to $24.8 million in 2016–17, a 41 percent increase over 2015–16 funding levels, and total funding will increase to $44 million for 2017–18.

Students are eligible to receive vouchers if their household income does not exceed 133 percent of the guidelines needed to qualify for the federal free and reduced-price lunch (FRL) program ($60,528 for a family of four in 2017–18). Students must also have attended a public school during the previous semester. Kindergartners, first graders, foster children, dependents of full-time active military members and children that have been adopted in the past year qualify for vouchers without having to attend a public school.

Like many other voucher programs around the nation, North Carolina’s income-based program could be improved on both per-student funding and eligibility. The scholarship cap of $4,200 per student per year is significant, yet could be improved to more closely align with funding levels the child would have received to attend a public school. Private schools that decide to accept Opportunity Scholarship students face regulations as well, including a requirement to report nationally standardized test performance to the government if they enroll 25 or more scholarship students. It is good that North Carolina allows private schools to choose among nationally norm-referenced tests; however, the state should remove the government reporting requirement and instead require results be reported to parents to maximize administrative flexibility for private schools.

• Income Limit: 133 percent x FRL
• Prior Year Public School Requirement: Conditional
• Geographic Limit: Statewide
• Enrollment Cap: None
• Budget Cap: $44 million (2017–18)
• Voucher Cap: $4,200
• Testing Mandates: National

School Requirements:

• Must not discriminate with respect to the categories listed in 42 U.S.C. § 2000d, as that statute read on January 1, 2014
• Comply with health and safety requirements
• Be accredited by the state board of education, a national or regional accrediting agency or an active member of the North Carolina Association of Independent Schools, or receive no funding from state government
• Provide the state with documentation for tuition and fees charged
• Conduct criminal background check on staff member with highest decision-making authority
• Provide parents with an annual written explanation of the student’s progress, including scores on standardized achievement tests
• Annually administer a nationally standardized test to voucher students and provide the test results to the state
• Provide graduation rates of voucher students to the state
• Contract with a certified public accountant to perform a financial review for schools accepting students receiving more than $300,000 in voucher grants

N.C. Rev. Stat. §§ 115C-562.1 through 562.7

On July 23, 2015, the North Carolina Supreme Court upheld all aspects of the state’s voucher for children of low-income households, the Opportunity Scholarship Program, as constitutional. Hart v. North Carolina; Richardson v. North Carolina.