States Ponder Over Adoption or Rejection of Federal School Voucher Programs
The United States is witnessing a significant shift in education policy, as states grapple with the implications of a new federal school tax credit provision for private schools.
The first federal school voucher program has been passed, requiring states to decide whether to participate. The legislation allows states to opt in to the choice provision, potentially leading to state-level battles over school choice. This program sets up a private school scholarship system where individual taxpayers can receive dollar-for-dollar tax credits for donations to organizations that grant scholarships.
Under this new law, individual taxpayers can claim a 100% tax credit for up to $1,700 in donations. Students whose families' income does not exceed 300% of their area's median gross income are eligible to receive scholarship funds. The scholarships could cover a wide range of expenses, including tuition, tutoring, school uniforms, technology, after-school programs, transportation, and services for students with disabilities.
Nationally, 30 states and the District of Columbia have at least one private school choice program, according to an Education Week analysis. Of those, 19 states have at least one private school choice program that's universally accessible to K-12 students in the state or on track to be.
Pennsylvania's governor, known for championing school vouchers, is reviewing the potential impacts of the new federal program. However, it remains unclear how blue and purple states will engage with the federal program, with some potentially adopting regulations that limit the use of funds at religious schools. Illinois, which sunset a tax-credit scholarship program in 2023, is determining a fair use of funds if it opts in to the federal program, as the governor believes Trump is taking away funds from public schools.
In contrast, South Carolina, where the state's highest court struck down its school choice program last year, the governor supports the school choice tax credit. North Carolina, led by a Democratic governor, passed a bill last week to opt in to the federal school choice provision. Colorado's governor is excited by the possibility of unlocking new federal tax credits for low-income students.
Not all states are on board, though. New Mexico has stated it will not opt into the provision due to concerns about a lack of accountability measures, potential loss of funding for public schools, and enrollment declines. Maryland's governor calls the federal budget bill "devastating" and is still determining how to mitigate its negative impacts.
The school choice provision was championed by President Donald Trump and passed in early July as part of the "One Big, Beautiful Bill Act" that included tax cuts, Medicaid, and food stamp cuts. Democratic state leaders are reviewing the provision, with some examining how the funding could help low-income students or support public schools. Thirteen out of the 24 responding governors' offices are from Republican-led states.
Tennessee, which already expanded school choice this year, plans to opt in to the federal program when it becomes available. The participation in a new nationwide school election program, the Juniorwahl 2025, is offered to all school types from grade 7 onwards, with schools preparing students to experience democratic elections parallel to the federal election on February 23, 2025. However, there is no explicit information on how all federal states currently position themselves regarding joining this program.
As the dust settles, it's clear that the school voucher debate is far from over. The coming months will likely see intense discussions and decisions at the state level, shaping the future of education in America.
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