North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S744

Introduced
3/25/25  

Caption

Voucher School Accountability Act

Summary

Senate Bill 744, the Voucher School Accountability Act, would substantially expand state oversight of nonpublic schools that accept North Carolina Opportunity Scholarship funds. The bill adds or strengthens a long list of conditions for participating schools, including annual reporting of tuition and fees, limits on tuition increases, criminal background check requirements, standardized testing and graduation-rate reporting, financial audits, publication of expenditures for schools receiving more than $250,000 in grant funds, maintenance of an in-state facility for in-person instruction, accreditation by the State Board of Education, minimum teacher-licensure thresholds, minimum instructional days or hours, reserve-fund requirements, nondiscrimination rules, and enrollment/discipline reporting. It also requires schools to comply with the state’s standard course of study and to provide parents with annual progress reports. The bill would also expand state-level data collection and reporting on the scholarship program. The Opportunity Scholarship Grant Fund Reserve would continue to receive large annual appropriations, with the bill setting out a schedule of funding through 2031-2032 and then a recurring appropriation thereafter, while also reducing some existing scholarship appropriations for 2025-2026 and 2026-2027. The Department of Public Instruction, the Division of Nonpublic Education, and the Opportunity Scholarship Authority would be required to produce additional annual reports on student demographics, learning gains, competitive effects on public schools, funding differences between scholarship awards and public per-pupil spending, and political donations by the highest-paid official and spouse of participating schools. The bill’s impact on state law would be significant: it would amend multiple provisions governing scholarship grants and nonpublic schools, creating new compliance obligations and enforcement mechanisms for schools that accept voucher funds. Schools found out of compliance could become ineligible for future scholarship funds, and the State Board of Education would gain a more direct role in accreditation and compliance review. The bill would therefore affect participating private and other nonpublic schools, the Scholarship Granting Authority, the State Board of Education, the Division of Nonpublic Education, families using Opportunity Scholarships, and public school systems that may be analyzed for competitive effects. Because no committee transcripts or votes were provided, there is no recorded debate or voting history to gauge sentiment from the legislative process. Based on the bill text and title, the measure appears to reflect a reform-oriented, accountability-focused approach to school choice rather than a simple expansion of vouchers. Its overall tone is regulatory and oversight-heavy, suggesting support from lawmakers seeking tighter controls on public dollars used at private schools. The main points of contention likely concern the breadth and intrusiveness of the new requirements. Potentially controversial provisions include mandatory accreditation, teacher-licensure minimums, tuition caps, required reporting of expulsions and political donations, racial and ethnic composition language, and the possibility of losing scholarship eligibility for noncompliance. Supporters would likely emphasize transparency, student safety, and fiscal accountability, while opponents may argue that the bill imposes public-school-style regulation on private schools and could reduce school choice options or limit participation in the scholarship program.

Impact

The bill would amend North Carolina statutes governing the Opportunity Scholarship program and nonpublic schools, especially G.S. 115C-12, 115C-562.2, 115C-562.5, 115C-562.7, and 115C-562.8. It would impose new eligibility, reporting, accreditation, testing, staffing, financial, and nondiscrimination requirements on nonpublic schools that accept scholarship funds, and it would authorize the State Board of Education and the scholarship authority to determine compliance and cut off future funding for violations. It also changes appropriations to the Opportunity Scholarship Grant Fund Reserve and reduces certain scholarship funding amounts for upcoming fiscal years.

Sentiment

No committee discussion or votes were provided, so there is no direct evidence of legislative sentiment from debate or roll call history. From the bill’s structure and title, the measure appears generally supportive of school choice but with a strong emphasis on accountability, transparency, and state oversight. The tone suggests that sponsors are trying to preserve the voucher program while tightening standards for participating schools.

Contention

Likely areas of contention include whether private schools should be subject to public-school-like regulation in exchange for voucher funds, especially requirements on accreditation, teacher licensure, standardized testing, tuition caps, reserve levels, and reporting of expulsions and political donations. Another likely dispute is the racial and ethnic composition requirement, which may raise concerns about feasibility, fairness, and constitutional or civil-rights implications. Funding reductions and the shift in appropriation levels may also be controversial among supporters of the existing scholarship program, while advocates of stronger oversight may view the bill as necessary to protect public funds and student interests.

Companion Bills

No companion bills found.

Previously Filed As

NC H815

Voucher School Accountability Act

NC H816

Voucher School Transparency Act

NC H1184

Voucher School Transparency Act

NC S866

Add Home Schools to Opportunity Scholarships

NC S389

Add Home Schools to Opportunity Scholarships

NC H807

Strong Public Schools for a Strong NC

NC HB815

House Bill 815

NC H1178

The NC Teacher Pay Competitiveness Act

NC HB807

House Bill 807

NC HB1178

House Bill 1178

Similar Bills

No similar bills found.