Murphy argues the federal scholarship tax credit taking effect in 2027 is the biggest K-12 financial opportunity in perhaps 60 years — since the Elementary and Secondary Education Act — and that opting in is an easy call for the 20 governors who haven’t yet decided. He lays out the mechanics: a 100% federal tax credit, dollar-for-dollar up to $1,700, for donations to scholarship granting organizations, framed as private charitable giving rather than public tax dollars, usable across public, charter, private, and religious settings. His central pressure point is the cross-state dynamic — taxpayers in non-participating states can donate to SGOs in opt-in states, so holdout governors don’t block the money, they just redirect it to other states’ kids.
Citing federal income tax data compiled by Education Reform Now, he argues that if under a third of federal-taxpaying donors in the 20 non-participating states each gave the maximum $1,700 to SGOs in opt-in states, at least $12.6 billion could transfer to out-of-state students — more than three-quarters of last year’s national Title I spending. He quotes Colorado’s Jared Polis (framed as the only Democratic opt-in governor) vowing to “go after” non-participating states’ donors, and cites New York’s Kathy Hochul signaling intent to participate pending Treasury guidance expected in September. Against the claim that the program harms public schools, Murphy counters that since 85%+ of students attend public schools, scholarship dollars will overwhelmingly flow to them for tutoring, special-needs services, extended-day programs, and technology.
Read the full story here: DC Journal
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