More than half of states signal opt-in to federal school choice tax credit

At the end of National School Choice Week, supporters are celebrating after more than half of all states signaled plans to opt in to a new federal school choice program.

The program – a tax credit scholarship that low- and middle-income students can use for private school tuition and other education services – is scheduled to begin next year. While program rules are still being developed, states are declaring their intentions to give schools and scholarship granting organizations time to prepare.

The credit will be available nationwide, but scholarships may be awarded only to students in states that choose to participate.

Several states announced their intentions this week, prompting leading school choice advocate Corey DeAngelis to post “We’re now at 27 states,” Thursday after New Hampshire announced its decision.

At least four states have said they will not participate: Wisconsin, Oregon, New Mexico and Hawaii. 

Wisconsin has about 61,000 students enrolled in school choice programs, but Gov. Tony Evers, a Democrat, said joining the federal effort would be “catastrophic” for public schools. The Wall Street Journal then accused Evers of “taking orders” from teachers’ unions rather than prioritizing students. 

“What’s really going on here is that teachers’ unions that give orders to Mr. Evers don’t want money for education going directly to parents to use as they see fit. That might lead to more education competition,” the editorial said. “The unions want every dollar to go directly to the public schools and districts that they control, no matter their educational results.” 

At least one Democrat governor has indicated support for opting in: Colorado Gov. Jared Polis, whose state does not currently have a school choice program. Three Republican-led states – Nebraska, North Dakota and Alaska – would also receive their first school choice programs through the federal tax credit. 

In North Carolina, a politically divided state with a large school choice population, Democrat Gov. Josh Stein vetoed an opt-in bill last fall but said he plans to participate once the federal government issues program guidelines, expected this summer. 

One incentive for Democrat-led states is that the funding may be used for tutoring and education support services for public school students, potentially improving academic outcomes. 

The White House has entered the debate by launching a school choice website that highlights states declining to participate. “Governors that have failed us,” reads a headline above an image of New Mexico Gov. Michelle Lujan Grisham. 

Oregon Gov. Tina Kotek, Evers and Stein are also pictured, with the word “failure” stamped over their photos, though Stein’s image would presumably be removed if North Carolina opts in. 

In Kansas, Democrat Gov. Laura Kelly has said the state will not participate, but Republicans who control the Legislature say they have a workaround. The Legislature is in session until April 10.