A Democratic governor who had been on the fence about participating in the new federal school choice program said Friday her state won鈥檛 participate, following the Trump administration鈥檚 release of a preview of how the program will operate.
Gov. Tina Kotek of Oregon said in a statement that the Trump administration鈥檚 information release 鈥渋ndicates states like Oregon will not have the flexibility they need to participate in alignment with our values.
鈥淎t this point, I simply cannot trust that any education policy coming from Trump鈥檚 White House is in the best interest of Oregon鈥檚 kids and our public education system,鈥� she said.
Kotek appears to be the first governor to make a decision on the federal program since the U.S. Department of the Treasury on Wednesday it expects to officially propose by the end of September.
The program鈥攁 part of President Donald Trump鈥檚 tax cut legislation that Congress passed last summer鈥攐ffers taxpayers dollar-for-dollar tax credits of up to $1,700 for donations to organizations that award K-12 scholarships. Those scholarships can cover private school tuition, home-school costs in some states, and some expenses for public school students, including tutoring, before- and after-school programs, technology, and uniforms.
The program takes effect next year, and governors have to decide whether to participate before scholarship-granting organizations, or SGOs, can give out awards to students in their states.
Kotek is the third Democratic governor so far to say their state won鈥檛 participate, after Govs. Tim Walz of Minnesota and Tony Evers of Wisconsin. Govs. Jared Polis of Colorado and Kathy Hochul of New York are so far the only two governors from their party to affirmatively choose to participate in the new program.
In three states with Democratic governors鈥擪ansas, Kentucky, and North Carolina鈥擱epublican legislatures overrode gubernatorial vetoes of legislation opting their states in. In Virginia, Republican Gov. Glenn Youngkin days before before Democratic Gov. Abigail Spanberger took his place.
Altogether, 31 states are now on track to participate in the federal tax credit program, according to Education Week鈥檚 tracker of state decisions.
Students will be eligible for scholarships as long as their family income is 300% of their area鈥檚 median income or lower. That threshold encompasses most U.S. students, including families earning more than $500,000 in Westchester County, N.Y., on the high end and $114,000 in Wolfe County, Ky., on the low end.
A preview of program regulations from the Trump administration
Multiple Democratic governors have told Education Week they would await guidance or regulations from the Treasury Department on how the tax-credit program would work before committing either way.
One question has been whether states will be able to set requirements for SGOs beyond the rules outlined in the federal law. Among other criteria, SGOs must be nonprofit, award scholarships to at least 10 students who don鈥檛 all attend the same school, spend 90% of their revenue on scholarships, and verify students鈥� income eligibility.
Some Democratic governors have expressed a desire for the scholarship awards to help low-income or public school students, and that schools receiving scholarship follow state academic accountability and nondiscrimination requirements that would bar them from denying admission to LGBTQ+ students or students with disabilities.
But the Treasury Department confirmed Wednesday 鈥渋mpose substantive SGO-specific requirements that are more restrictive鈥� than the law鈥檚 requirements.
Seven Democratic governors whose offices responded to Education Week inquiries after the Treasury Department鈥檚 information release said they hadn鈥檛 yet made decisions, with some saying they would await final regulations from the federal government.
Kotek responded that she won鈥檛 opt Oregon in.
Kotek initially said no before reconsidering earlier this year
Kotek was among the first Democratic governors last summer, soon after the policy passed, to say she wouldn鈥檛 opt her state in. But she and two other Democratic governors who initially said no later reconsidered and said they would await additional details before deciding whether to participate.
Democratic governors have been the target of intensifying advocacy from both program proponents and opponents.
School choice advocacy groups, including Democrats for Education Reform and the American Federation for Children, said the Treasury Department鈥檚 release should propel governors to opt in.
鈥淭reasury has been very clear that all students in all educational settings, including home school in many states, are going to be eligible to receive scholarships,鈥� said Ashling Preston, the American Federation for Children鈥檚 director of federal affairs. 鈥淣ow that there is that clarity, there鈥檚 no reason left why any governor shouldn鈥檛 opt into this opportunity immediately.鈥�
Democrats for Education Reform and favorable polling.
On the other side, the leaders of more than 30 state teachers鈥� unions on Thursday calling the tax credit program 鈥減art of a broader effort to privatize public education and erode public accountability鈥� and urging them not to participate.
Melinda Person, president of New York State United Teachers, said she expected public school students 鈥渢o get crumbs鈥� from the program and that 鈥渢he biggest winners are going to be those that are trying to privatize public education.鈥�
Still, more public schools are starting to focus on how they can take advantage of the tax-credit scholarships coming online next year, including setting up or partnering with scholarship-granting organizations and considering which services they offer could be scholarship-funded.
