Democrats and public school supporters have until the end of the year to decide whether to accept a Republican initiative. This program might aid some public school families in covering costs like tutoring and summer school. However, it would also direct taxpayer money to private schools.
Jared Polis, the Colorado governor, became the first Democratic leader to join the Federal Scholarship Tax Credit. The Trump administration touts this as the nation’s first comprehensive school choice program. Polis describes his decision as an obvious one. Through a significant tax credit, the policy could generate billions in taxpayer donations nationwide. ‘Of course, I want Colorado kids to benefit,’ Polis told NPR, suggesting other governors share that sentiment.
Republicans agree, yet some Democrats have reservations. Minnesota Governor Tim Walz voiced his opposition, stating, ‘We are not doing it.’ Meanwhile, 15 Democratic governors and Washington, D.C.’s mayor remain undecided, a tracker by Ed Week shows. The deadline to opt in for the next year is Jan. 1.
Jessica Levin, litigation director at Education Law Center, highlights the complexity of the situation. The policy is designed to create political challenges, she says. Many Democratic governors fear missing out on public school benefits and potential backlash. Yet, Levin and other public school advocates view the program as a Trojan horse.
Tax Credit Mechanics
Starting January, eligible taxpayers can donate up to $1,700 to a scholarship-granting organization (SGO). These donations convert to scholarships, which assist families with various education costs. The government offers a dollar-for-dollar reduction in federal income tax, up to $1,700.
More than 138 million people could qualify for the full tax credit, according to the Institute on Taxation and Economic Policy. The U.S. Treasury Department estimates this could lead to nearly $26 billion in scholarship donations by 2030.
Polis isn’t alone. Only New York Governor Kathy Hochul has joined him among Democrats. Democratic leaders in Kansas, Kentucky, and North Carolina resisted, but Republican legislatures prevailed. If governors choose not to participate, their state’s residents can still donate but won’t receive scholarships.
Adapting to the Program
Public education advocates in Republican-led states face a dilemma: oppose the scholarship program or encourage participation to gain benefits. The Southern Education Foundation (SEF) chose to adapt. Despite disagreeing with aspects of the program, they aim to support public schools through SGOs.
Future School Fund, a national SGO, focuses on aiding public school students. Deborah Gist, its founder, emphasized the inclusion of public schools in the bill. The program opens funding opportunities for field trips, tutoring, aftercare, and more.
Challenges for Public Schools
Public schools must decide what services they can charge fees for to benefit from the tax credit. While basic services remain free, extras like field trips and assemblies could generate revenue. This approach, while legally viable, raises ethical concerns about the role of public education.
Jessica Levin argues the best support for public schools is direct funding, not participation in privatization efforts. Marguerite Roza from Georgetown’s Edunomics Lab notes that districts must actively engage to secure funding.
Disparities and Concerns
Wealthier communities are likely to benefit more from the program. These areas have more resources to raise funds and attract donations. Jon Valant of the Brookings Institution highlights the potential imbalance, with richer counties generating far more than poorer ones.
The program is not limited to low-income families. Most students qualify, leading to concerns it might favor wealthier communities disproportionately. Valant warns it could become a ‘Title I for rich kids.’
For Fred Jones Jr. of SEF, embracing the program is a practical necessity. He advises against it but recognizes its inevitability in the South. Without deliberate efforts to support public school students, funding will likely favor private schools.