America’s governors are weighing whether to allow their residents to claim a federal tax credit for donations to voucher or scholarship programs. Most Democrats oppose the idea because it would benefit school choice in their states. Will one blue state governor’s decision to embrace the tax credits, and prioritize students, break the mold?
So far 28 governors say they will allow their states to take advantage of a new law that lets taxpayers claim a 100 percent federal tax credit worth up to $1,700 each year when donating to scholarship granting organizations, known as SGOs. It came as a provision in last year’s One Big Beautiful Bill Act.
These initiatives are vital for underprivileged children to escape failing public schools. Sadly but unsurprisingly, they are opposed by the leaders of teacher unions, historically among the Democratic Party’s biggest funders, who seek to maximize their rolls of dues-paying members.
At first only Republican governors approved the tax credits, but outgoing Colorado Gov. Jared Polis (D) made waves at the end of January by enthusiastically embracing them.
Polis calls it a “no-brainer.” He has been a longtime advocate of charter schools, co-founding two himself before entering politics. And Polis made improvements in tracking educational performance the centerpiece of his tenure as chairman of the bipartisan National Governors Association.
Democratic Govs. Josh Green (Hawaii), Michelle Lujan Grisham (New Mexico) and Tina Kotek (Oregon) previously announced they were not going to allow the deductions in their states. Yet since Polis’s move, his colleagues seem to be reconsidering.
Green now says he’s taking his minority caucus’s support for the tax credits “very seriously,” according to Education Week. Grisham says she has not made a final decision, while Kotek also insists the decision is still pending.
Polis looks prophetic. “I think most, if not all, Democratic governors will get there as they learn about the chance to boost charitable contributions in their state,” he said. “If there are states that don’t, for some reason, people in those states can still give to charities in states like Colorado.”
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