North Carolina State Representative Gregory F. Murphy has expressed concern over Governor Stein’s veto of state legislation that would have allowed students to benefit from a new federal scholarship tax credit program. According to Murphy, Congress created the “tax credit” for donations to scholarship organizations, but the governor’s decision has left students unable to benefit and limited taxpayer donations.
“Through the Working Families Tax Cut, Congress created a new tax credit for donations to organizations that grant scholarships to students who wish to attend the school of their choice,” said Rep. Gregory F. Murphy. “Unfortunately, Governor Stein vetoed legislation passed by the North Carolina General Assembly, which would allow North Carolina and our students to participate in this new program. North Carolina students cannot be left behind by Governor Stein’s political games. The quality of a child’s education should not be determined by their zip code, and North Carolina taxpayers deserve to be able to freely donate to Scholarship Granting Organizations in our state.”
Murphy, along with five other North Carolina representatives, sent a letter to House Speaker Destin Hall and Senate President Pro Tempore Phil Berger. They urged the General Assembly to override Governor Stein’s veto of HB 87, known as the Educational Choice for Children Act. This bill would enable North Carolina to participate in a federal scholarship tax credit program established by the Working Families Tax Cut. The program offers a $1,700 tax credit to individuals who donate to Scholarship Granting Organizations (SGOs) that provide scholarships for eligible students.
According to Murphy’s press release, due to the Byrd Rule, states must opt into this program. North Carolina had passed HB 87 intending to be the first state to do so. However, Governor Stein’s veto prevents families from accessing these scholarships and benefiting from the federal initiative.
The representatives said in their letter that “Governor Stein has stated that he would like further federal guidance before signing HB 87 into law.” They noted that since the provision will not take effect until 2027, and given that the U.S. Treasury is prioritizing tax provisions for implementation by the 2026 filing season, waiting for guidance could prolong uncertainty for SGOs and hinder their ability to serve students effectively.
Murphy is currently serving his fourth term as representative for North Carolina’s Third Congressional District. He is involved in several committees including the House Ways and Means Committee and the House Veterans Affairs Committee. Additionally, he co-chairs the House GOP Doctors Caucus and holds degrees from Davidson College and the University of North Carolina’s School of Medicine. Notably, he is recognized as the only practicing surgeon in Congress.
