Colorado Governor Jared Polis signs federal scholarship tax credit program
Colorado Governor Jared Polis has signed the Federal Scholarship Tax Credit program, allowing private donations for educational scholarships in exchange for tax credits, which could significantly incโฆ
Colorado Gov. JaredโฏPolis became the first Democratic governor to sign on to the Federal Scholarship Tax Credit, a new federal voucher program that lets taxpayers donate up to $1,700 to scholarshipโgranting organizations and receive a dollarโforโdollar tax credit. The move could open billions of dollars in private donations for schoolโchoice options, from privateโschool tuition to tutoring and summer programs. Governors must decide by Jan.โฏ1 whether to opt their states in for the 2027 school year.
The program, promoted by the Trump administration as โAmericaโs first nationwide schoolโchoice program,โ is designed to funnel private money into education through a tax credit that refunds donors the full amount of their contribution. Qualifying donors can give to a scholarshipโgranting organization, which then converts the money into vouchers that families can use for a range of educational expenses, including computers. The governmentโs part of the deal is simply to reduce the donorโs federal income tax bill by the same amount. Advocates say the credit could mobilize more than 138โฏmillion eligible taxpayers.
Democrats are split on the plan. Minnesota Gov. TimโฏWalz publicly rejected participation, saying his state will not join. A tracker by Education Week shows 15 Democratic governors and the mayor of Washington, D.C., remain undecided as the deadline approaches. Litigation director Jessica Levin of the Education Law Center warns the credit is a โTrojan horseโ that could siphon students away from public schools and erode their funding. Marguerite Roza of Georgetown Universityโs Edunomics Lab adds that donors are not spending new money; they are redirecting taxes that would have gone to the Treasury. The political pressure is intense, with some governors fearing backlash if they refuse a policy that claims to benefit publicโschool students.
If more states opt in, the voucher market could expand rapidly, reshaping how families pay for education and potentially weakening publicโschool budgets. Critics argue the program privileges private providers and creates a new wedge in the education debate. Supporters contend it offers families needed flexibility and resources. The Jan.โฏ1 deadline will force a clear signal from Democratic leaders on whether they view the credit as a boon for publicโschool families or a threat to the public system.
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