This paper examines the legal questions involved in public financial support and resulting public control of private schools in both Canada and the U.S. Three factors are responsible for increased public interest in private schools in recent years, the paper states: increased educational costs, concern over the concept of equal education, and competition between public and private schools for students. The paper discusses and compares private school enrollment figures in Canada and the U.S., the legal frameworks within which their educational institutions operate, and legal issues relating to public funding and public control of their private schools. The paper concludes that private schools in North America are becoming increasingly dependent on public funds to assist in their financial operations. They are also becoming increasingly subject to controls established by government and, as a result, the issue of their survival is at stake. (Author/LD)