A new federal voucher could help public schools

Key Points:

• Democratic governors face a difficult choice on whether to join the Federal Scholarship Tax Credit program, which offers tax credits for donations to scholarship organizations that help families pay for education expenses, including private school tuition.
• Colorado Governor Jared Polis and New York Governor Kathy Hochul are the only Democrats to opt in so far, while others remain undecided or have rejected the program, fearing it diverts public funds to private schools and undermines public education.
• The program allows taxpayers to donate up to $1,700 to scholarship-granting organizations (SGOs) and receive a dollar-for-dollar federal tax credit, potentially raising billions for educational scholarships nationwide by 2030.
• Public school advocates are divided: some, like the Southern Education Foundation and Future School Fund, are working within the program to direct funds toward public school students, while others warn it primarily benefits private schools and could exacerbate funding inequities.
• Critics highlight that wealthier communities are more likely to benefit from the program due to local fundraising capacity, and public schools must find ways to charge fees for services to access funds, raising concerns about equity and the privatization of public education.