31 states decide to join federal school choice program

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(The Center Square) – Thirty-one states have opted in to the federal Education Freedom Scholarship Program, while 19 states and Washington, D.C. have not done so, ahead of the January 2027 deadline. 

The Trump administration launched the school choice initiative in 2025 through the One Big Beautiful Bill Act. This created a federal income tax credit of up to $1,700 annually for individuals who donate to certified Scholarship Granting Organizations. 

SGOs would then distribute funds to families for education expenses, including tuition, tutoring, curriculum and instructional materials.  

U.S. Secretary of Education Linda McMahon and other supporters of school choice have said these programs place parents back in the driver's seat of their child’s education, providing more flexibility and options for the family. 

While school choice has drawn bipartisan support in some areas, several Democratic-led states, including Pennsylvania and Illinois, have not joined the program. 

Govs. Josh Shapiro of Pennsylvania and J.B. Pritzker of Illinois have raised concerns about state oversight, accountability and the degree of control states would retain under the federal initiative. 

Jorge Elorza, president and CEO of Democrats for Education Reform, said states that decline to opt in risk losing significant financial benefits.

“Pledging to put more money into more of the same and expecting the general public and parents just to trust that this time, it's going to be different. How long do we expect families to believe that?” Elorza told The Center Square. 

Though the initiative originated from President Donald Trump’s One Big Beautiful Bill, Elorza said it should be evaluated on its merits.

In Colorado, The Center Square reported that the tax credit program could generate between $164 million and $493 million annually, create thousands of jobs and expand access to schools of choice for tens of thousands of students. 

States that have opted into the federal Education Freedom Scholarship Program are Alabama, Alaska, Arkansas, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia and Wyoming.

Students living in states that do not opt into the program are not eligible to receive scholarships funded through the federal initiative. Yet taxpayers in those states may still claim the federal tax credit by donating to SGOs operating in participating states. 

Four states have announced they will not participate in the federal Education Freedom Scholarship Program: Hawaii, Minnesota, New Mexico and Oregon.

Arizona and Wisconsin have not opted into the program either. Govs. Katie Hobbs of Arizona and Tony Evers of Wisconsin have vetoed legislation that would have required the state to participate, stating that it diverts funds from public education.