Trump education official says school choice program will put pressure on Dem-led states
A US Department of Education official says competition for scholarship donations could push Democratic-led states to join President Donald Trump’s federal school choice tax-credit programme. The claim comes as states decide whether to opt in and New York Governor Kathy Hochul moves towards participation, making the programme a point of debate over access to education funding.
The Federal Scholarship Tax Credit lets taxpayers claim up to $1,700 in federal tax credits for donations to non-profit scholarship organisations, but states must opt in for local families and groups to benefit. The IRS says more than half of states have signed up; Colorado became the first Democratic-led state to participate, while Kentucky joined after lawmakers overrode the governor’s veto. Supporters say opting in could keep donations and scholarships within a state, while critics argue school choice may draw attention and resources away from public schools.
- States must opt in to access the federal scholarship programme.
- Taxpayers can claim up to $1,700 in credits for donations.
- More than half of states have reportedly joined.
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The federal scholarship tax credit is a US scheme that gives taxpayers a credit of up to $1,700 for donations to non-profit groups that fund scholarships. A state must opt in before families and organisations there can benefit.
The programme is part of a wider debate over school choice, which allows families to use scholarships for education outside the public school system. Supporters say opting in can keep donations and scholarship funding in a state; critics worry it could divert attention and resources from public schools.
States decide whether to join. Colorado was the first state led by Democrats to opt in, while Kentucky joined after lawmakers overrode its governor’s veto.
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The case for
Supporters argue that opting in gives families more educational options and helps scholarships reach local students, including those who might otherwise lack access to a suitable school. Since taxpayers can claim the credit only through eligible donations, participation could keep those funds and the choices they support within a state rather than leave them elsewhere.
The case against
Critics argue that directing tax-credited donations towards private-school scholarships may shift resources and public attention away from public schools, which serve all pupils. They may also question whether a federal programme should encourage states to join through competition for donations, particularly if its benefits are unevenly available or depend on families’ ability to navigate alternative options.