Student Funding

Use of Funds

Opportunity Scholarship funds are used to pay for tuition at participating private schools. Fees for transportation, books, equipment, and other items required by the school may also be covered by the program, with payments made directly to the school.

Funding Amount and Source

The maximum scholarship amount allowed is 100% of the average per-pupil state K–12 allocation based on the prior fiscal year, not to exceed the private school’s actual tuition and fees. The maximum amount is reserved for students from families earning at or below the federal Free and Reduced-Price Lunch (FRL) program. Families earning above this threshold receive lesser amounts in graduated tiers. See the schedule below:

Household Income Level	Maximum Voucher Amount
100% FRL and below	100% average state funding
100% FRL to 200% FRL	90% average state funding
200% FRL to 450% FRL	60% average state funding
450% FRL and up	45% average state funding

The North Carolina legislature appropriated $541,500,000 for 2024–2025, meaning no more than 95,000 students will be able to participate, or about 5% of North Carolina’s K–12 student population.

(Last updated July 15, 2024)

Student Eligibility

Students must meet the following requirements for eligibility: (1) live in North Carolina; (2) be at least 5 years old by August 31 or at least 4 years old by April 16 and approved for kindergarten according to the head of the school after finding “that the child is gifted and that the child has the maturity to justify admission to the school” according to state guidelines; (3) has not graduated from high school; and (4) has not enrolled in post-secondary institution full-time. Students may participate in both the Opportunity Scholarship and ESA+ program. If more students apply than funding permits, then scholarships are awarded first to students who had a scholarship the prior year and then to students based on their household income level.

(Last updated July 15, 2024)

EdChoice Expert Feedback

North Carolina’s voucher program helps tens of thousands of students access schools that are the right fit for them. In 2023, policymakers took the massive step of expanding to universal eligibility, meaning many more could soon benefit. For school year 2022-2023, roughly two percent of students statewide actually use one of North Carolina’s two educational choice programs (including the Personal Education Savings Accounts). The average voucher value is nearly $5,300, which is about half of the average expenditure per student at North Carolina’s district schools. The program also has a provision that provides higher education scholarships for students to attend an in-state college or university, provided they graduate high school in three years instead of four. Although eligibility is universal, the budget cap will allow up to approximately 100,000 students to participate. In order to expand educational choice access even more for families, North Carolina policymakers should expand lift the cap so all students are funded eligible. The program could also be converted to an education savings account. North Carolina’s voucher program contains testing requirements and test reporting for private schools, along with a requirement for the department of education to conduct a comparative outcomes report. Otherwise, the program generally avoids unnecessary and counterproductive regulations. (Last updated December 18, 2023)

Rules and Regulations

Program Guidelines

• Income Limit: None
• Prior Year Public School Requirement: None
• Enrollment Cap: None
• Testing Mandates: Nationally norm-referenced tests
• Special Needs Pathway: None

Participant and Family Guidelines

• Click Here for the Program Administrator’s Parent Handbook
• Education Requirements: N/A
• Parent Supplemented Funds/Scholarships: Allowed
• Miscellaneous: N/A

Education Provider Guidelines

• Accreditation/Approval: Optional
• Employment Standards: Conduct criminal background check on staff member with highest decision-making authority
• Nondiscrimination: Not discriminate with respect to the categories listed in 42 U.S.C. § 2000d, as that statute read on January 1, 2014
• Calendar/Curriculum/Attendance:
  • 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 scholarship students and provide the test results to the state
• Financial: Contract with a certified public accountant to perform a Financial Review or Cash Basis Accounting Report for schools with 70 or more scholarship students
• Miscellaneous:
  • Comply with health and safety requirements
  • Provide the state with documentation for tuition and fees charged
  • Provide graduation rates of scholarship students to the state
  • Maintain a facility within the state where in-person instruction is provided

(Last updated December 18, 2024)

Governing Statutes

N.C. Gen. Stat. §§ 115C-562.1 through 562.8

(Last updated July 15, 2024) 

Legal History

On July 23, 2015, the North Carolina Supreme Court in Hart v. State upheld the constitutionality of all aspects of the state’s scholarship for children of low-income households. The lower court decision in Hart v. State, No. 13-CVS-16771 (August 28, 2014), was overturned. Hart v. State, 774 S.E.2d 281 (N.C. 2015); Richardson v. State, 774 S.E.2d 304 (2015). 

On April 19, 2023, the North Carolina Association of Educators filed a notice of voluntary dismissal in Walker Kelly v. State of North Carolina. They brought the case alleging the Opportunity Scholarships program, “as applied,” unlawfully funds religious discrimination, lacks meaningful educational requirements, discriminates against students based on “homosexuality, bisexuality, or gender non-conformity,” and fails to accomplish a public purpose. Kelly v. State and North Carolina State Education Assistance Authority, Wake County General Court of Justice, Superior Court Div., No. 20-CVS-8346. 

Prior to the voluntary dismissal, the Court of Appeals of North Carolina remanded the case, ruling that plaintiffs’ “as applied” challenge was improper; plaintiffs can only make a facial challenge against the Opportunity Scholarship Program. Walker Kelly v. State of North Carolina, Court of Appeals of North Carolina, 2022-NCCOA-675, No. COA21-709. The North Carolina Association of Educators have not released any public statements about their decision to withdraw the case. 

(Last Updated December 6, 2023)