Pennsylvania Gov. Josh Shapiro (D) has built his political brand around a stated willingness to buck party orthodoxy when pragmatism demands it. He has an opportunity to show he means it.
Beginning Jan. 1, Americans will be able to claim a federal income-tax credit of as much as $1,700 for contributions to nonprofit scholarship-granting organizations in participating states. Married couples filing jointly can qualify for as much as $3,400. Those organizations will use the money to help families pay education expenses.
Thirty states have formally opted into the Federal Scholarship Tax Credit, and New York has announced that it will join them. Among governors who have embraced the program, only two Democrats have done so: Colorado Gov. Jared Polis and New York Gov. Kathy Hochul.
Pennsylvania is one of the holdouts. Shapiro, who holds a commanding lead in polls ahead of Tuesday’s election, is widely viewed as a potential 2028 presidential contender. He says he is “very open” to participating in the scholarship tax credit. During an October gubernatorial debate, he said that, unlike governors who have “shut the door,” he has not. He said his administration is digesting recently released federal rules. Shapiro’s Republican challenger, Stacy Garrity, says she would opt in on “day one.”
Shapiro may be waiting until after Election Day to risk the wrath of the teachers unions, who call the federal credit a private-school voucher program. Even so, the decision should be “day one” for him, too. While the program does expand access to private schools, scholarships can also support qualifying expenses such as tutoring, books and after-school reading programs for kids in public schools. Critically, this is a program that enables children from low-income backgrounds to gain access to educational opportunities they’re otherwise unlikely to encounter.
The tax credit creates an exciting experiment in education competition. No governor, superintendent or teachers union knows which school, tutor or educational program will best serve every child. And it’s hard to forecast how many taxpayers will decide to donate to scholarship programs. Instead of government deciding which option is best for every child, parents are afforded more power to decide for themselves.
Markets cope with such uncertainty by decentralizing decisions. Successful providers attract more customers; unsuccessful ones adapt or fail. Competition also produces information. Scholarship organizations will face reporting and audit requirements. States can decide annually whether to participate.
The instinct of teachers unions will always be to protect the existing system. Governors represent everyone, including parents and children. If Shapiro wants to demonstrate the kind of independence that could distinguish him on the national stage, this is an easy place to start.
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