Education

States weigh federal K-12 scholarship tax credit as Washington governor faces pressure

Washington's schools chief has urged Gov. Bob Ferguson to turn down the program, while New York and other states have moved to opt in. Officials elsewhere say they are still reviewing the rules.

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What happened

States are deciding whether to join a new federal tax credit that funds K-12 scholarships, which begins Jan. 1 and offers up to $1,700 per donor or $3,400 for married couples filing jointly. Washington state has not joined, and Superintendent of Public Instruction Chris Reykdal has urged Gov. Bob Ferguson to reject it as the state faces a budget crisis.

Why it matters

The credit could bring billions of dollars in scholarships into participating states, and Washington's decision comes as its school system faces rising costs and funding cuts.

Timeline

  1. Oct 14, 10:20 PM ET: Washington state had not joined the new federal tax credit program tied to K-12 education funding.
  2. Oct 15, 4:00 AM ET: New York Gov. Kathy Hochul moved to have New York State join the federal credit, which the reports describe as providing $3,400 a year for families.
  3. Oct 15, 8:33 PM ET: Chris Reykdal, the state superintendent of public instruction, publicly urged Gov. Bob Ferguson to reject the credit amid Washington's school budget crisis.
  4. Oct 16, 8:50 PM ET: Treasury Secretary Scott Bessent and Sen. Jon Husted promoted the new tax credit for education scholarships at a roundtable.

Coverage

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