Support Surges for New Education Tax Credit Program
Federal School Choice Provision Wildly Popular
The new federal school choice provision is proving to be very popular as people learn more about the educational and tax credit opportunities that the provision provides. Results from a new poll released by EdChoice show that the new federal school choice provision is strongly supported by a majority of parents and adults nationwide. The report, titled The Public, Parents, and K-12 Education, reviewed the responses of participants on a variety of educational topics, such as parental satisfaction with educational policies, educational plans for their children, and their interest in educational options.
One question asked participants their view of the newly established Educational Freedom Tax Credit (EFTC), and explained the EFTC as follows: “States may choose to opt in to participate in a new federal tax credit for education that allows individuals to donate to eligible K-12 scholarship-granting organizations in exchange for a federal tax credit of up to $1,700. These organizations provide scholarships or education-related assistance to eligible K-12 students.” About 70% of parents and 60% of adults supported their state opting in to the program, with a very small percentage (9% of parents and 11% of adults) opposing participation. Approximately 38% of parents and 20% of adults indicated they were likely to contribute to a scholarship-granting organization (SGO) in exchange for a tax credit. If their states did not participate in the EFTC, percentages dropped slightly to 26% of parents and 13% of adults, indicating they would donate to an SGO out of state.
An Illinois ballot measure also showed that the EFTC is extremely popular among voters. A question regarding the state’s participation was on the ballot during the recent primary elections in all or part of the state’s 31 counties. In every locale, the measure received strong support. In total, 63% of voters favored the state opting in to the program. The question was worded as follows: “Should Illinois opt in to a federal program that would provide public K-12, private school, and homeschool students with privately donated funds for academic needs, such as tutoring and test preparation, educational therapies for students with disabilities, tuition, books, exam fees or for other specified academic needs?” Illinois Gov. J.B. Pritzker has not yet announced his plans regarding the EFTC, but the results of the ballot measure show that his constituents are overwhelmingly in favor of the state’s participation.
To date, 29 other states have opted in to the EFTC, which is set to begin on January 1, 2027. Michael Petrilli, president of the Thomas B. Fordham Institute, noted that Democratic governors face a “tough dilemma.” They either “bow to the demands of the teachers’ unions and bar the schoolhouse door” by refusing to opt in to the program, or they recognize the popularity of the program, especially among minorities, and decide to allow “families to accept scholarships that are funded by charitable donations from taxpayers nationwide.” He added that these are “scholarships that don’t cost their state a penny, and therefore can’t be said to be taking any money from their public schools.”