(The Center Square) – Pressure is mounting on Washington Governor Bob Ferguson to decide if Washington will opt into the federal education tax credit scholarship program, now that a second Democratic governor has signaled support.
New York Governor Kathy Hochul said Thursday she intends to opt her state into the program that would expand school choice across the state by helping nonprofits offering financial assistance for education expenses raise money.
27 states have officially opted in, and three more states have stated they intend to opt in.
The program will provide a dollar-for-dollar federal tax credit of up to $1,700 for donors to scholarship-granting nonprofits.
Every eligible taxpayer can take advantage of the tax credit, but only states that have opted into the program can accept the money for their state. Otherwise the money is directed to other states that have opted into the program.
“For Washington state, it’s conservatively over $700 million annually that could be for public and private school students’ educational expenses,’ said Washington Policy Center’s Education Center Director Vicki Murray in a Friday interview with The Center Square.
“So, do we let all that money go?” she said.
Murray says Washington taxpayers can take the tax credit no matter what. The question is whether that money will stay here or profit other states.
“As federal taxpayers, each and every one of us is already able to take that credit off of our income taxes. So that’s done. There’s no question about that.” Murray said.
“The only question before Democratic governors, is whether your state is opted in or not, because if your state does not opt into participate in the program, federal taxpayers can make donations for scholarships, but they’ll go to children and schools in other states,” she added.
“So, the question for Governor Ferguson is, do we want more than $700 million annually to go to now 27 states that have formally opted in? Not Washington at this point? Why wait?”
As reported by The Center Square, scholarships can be used to cover the same elementary and secondary school expenses included in Coverdell education savings accounts, including:
TuitionFeesTutoringSpecial needs student servicesBooksSuppliesUniformsTransportationComputersSupplementary services such as extended day programs
Washington Superintendent of Public Instruction Chris Reykdal has stated he is opposed to the idea, suggesting it could pull money from public education.
However, the program specifically allows those taking advantage of the tax credit to direct the dollars how they choose, including to public schools.
Back in January, The Center Square asked Sen. Jamie Pedersen, D-Seattle, whether he would support opting the state into the program, given the fact the money could be directed into public education, just as well as private school programs or other education priorities.
“I guess I respectfully disagree,” Pedersen said. “It’s a giant diversion of resources out of the public schools.”
The tax credit was created in the One Big Beautiful Bill Act, signed into law by President Donald Trump last summer. The program was immediately embraced by most Republican states.
Democratic Gov. Jared Polis of Colorado has opted in and now New York’s Hochul has signaled she plans to join the effort.
Ferguson’s office responded Friday via email to a request for an update on the decision.
“The governor has not made a decision yet, we’re waiting for the rules to come out,” wrote Brionna Aho, communications official for Gov. Ferguson.
Aho was referring to guidance expected from the U.S. Treasury Department, which is expected this summer to clarify how donated money might be directed and whether states can prevent scholarship-granting organizations from discriminating against certain students or organizations.
The Center Square reached out to the Washington Education Association for comment, but did not receive a response before publication.
