Private schools established during desegregation in the South are now reaping significant financial benefits from expanding voucher-style programs. A ProPublica analysis reveals how these "segregation academies" are receiving millions in taxpayer dollars while often failing to reflect the demographics of their communities. In North Carolina alone, 39 such schools have been identified, with 20 having student bodies that are at least 85% white. These academies play a crucial role in perpetuating school segregation and racial separation.

Uncovering the Hidden Costs of Voucher Programs in the South

North Carolina's Voucher Program: A Growing Controversy

North Carolina launched its state-funded private school voucher program in 2014, initially for low-income families with only 1,200 participants. But last fall, lawmakers expanded eligibility to all income levels and those already in private schools, sparking a fierce debate. Republican Rep. Tricia Cotham argued that it ensures every child has a chance to thrive, while Democratic Rep. Julie von Haefen pointed to its "legacy of white supremacy" and called the expansion a "gross injustice." So many students flocked to the program that there is now a waitlist of about 54,000 children. Paying for all of them would double the current number of participants. Gov. Roy Cooper, a Democrat, vetoed the measure, but the GOP supermajority is expected to override it.

Vouchers don't always live up to their name for Black children. Private schools don't have to admit all comers and don't provide busing or free meals. Due to income disparities, Black parents are less likely to afford the difference between the voucher and tuition. And in some rural counties, segregation academies are the only private schools available.

Josh Cowen, a professor of education policy at Michigan State, studies these barriers and sees where vouchers fall short. "Eligibility does not mean access," he said.

The Impact of Voucher Programs on Segregation Academies

Of the 20 vastly white segregation academies in North Carolina that received voucher money, nine were at least 30 percentage points more white than the counties they operate in. Otis Smallwood, superintendent of the Bertie County Schools, witnesses this gap. Many white children attend Lawrence Academy and other schools, making his district's enrollment about 22 percentage points more Black than the county overall.

When a ProPublica reporter told him that Lawrence Academy received $518,240 in vouchers last year, he was dismayed. "That's half a million dollars I think could be put to better benefit in public schools," he said.

If lawmakers override the governor's veto and fund the waitlist, Bertie County could lose more state funding than any other district. Across the South, the volume of public money through voucher programs is set to increase. But many states fail to require basic demographic data to be shared with the public.

North Carolina and Alabama gather demographic information about voucher recipients but don't disclose the race of students. Georgia doesn't collect racial demographic information for its tax credit program. "Why should we not be allowed to know where the money is going? It's a deliberate choice," said Jessica Levin.

Advocacy groups resist rules that foster transparency out of concern for private school participation. Mike Long, president of Parents for Educational Freedom in North Carolina, said, "Their fear is that if they accept it, these are tax dollars, and therefore they would have to submit to government regulation."

The Decline in Black Voucher Recipients

The share of Black students receiving vouchers in North Carolina has dropped significantly since the program's launch. In 2014, more than half the recipients were Black, but this school year, it is 17%. Lower-income families were prioritized for vouchers, so the remaining applicants on the list are mostly in higher income tiers and more likely to be white.

Kwan Graham, who oversees parent liaisons for Parents for Educational Freedom in North Carolina, said more Black parents don't apply because they don't know about the vouchers. Private schools can select and reject students based on various factors.

The nonprofit Public Schools First NC has tallied admissions policies that private schools use to reject applicants. Many require in-person interviews or tours and may use phrases like "come visit the school and see if you're the 'right fit.'"

The History and Legacy of Segregation Academies

When segregation academies opened, some white leaders declared their goal of preserving segregation, while others shrouded their racist motivations. Some parents complained about federal government overreach. Early on, Southern lawmakers used taxpayer money to boost these academies through voucher programs.

Lawrence and Northeast academies have grown their enrollments while receiving voucher money, even as the rural counties they operate in have lost population. None of the three academies' headmasters responded to ProPublica's requests.

One Democrat who helped Republicans expand the voucher program, Shelly Willingham, said he doesn't love vouchers but supports the funding for other issues. Another Democrat, Michael Wray, who graduated from Northeast Academy and has a mixed voting record on vouchers, did not respond to ProPublica's requests.Rodney Pierce, a Black public school teacher, was outraged by the voucher expansion and challenged Wray for his state House seat. He said he wouldn't send his own children to a school founded as a segregation academy.

"Particularly in the Black community, we care about our public schools," he said. "Many Black families have little to no relationship with local private schools."