Are Tax-Credit Scholarships ‘Free Money’ for Blue States?

Chalkbeat asked all 23 Democratic governors whether they plan to opt into the federal tax-credit scholarship. Only two said no, saying it would hurt public schools. Stein’s veto statement represents the first tentative yes. Another indicated he’s “excited” about the program’s potential to help kids from low-income backgrounds. Others declined to comment or said they were waiting to learn more about the program while reiterating their support for public schools.

Norton Rainey, CEO of ACE Scholarships, is happy to grab on. Over 25 years, ACE has given out some 110,000 scholarships to students from low-income backgrounds worth a collective $333 million. He’s prepared to make the case to donors and governors that these scholarships transform lives and deserve their support.

“It’s a game changer for our parents, our kids, our communities, our country,” he said. “I think this is opening up the flood gates.”

Greta Alexander sent four boys to Fort Worth public schools where they struggled to learn in crowded classrooms and where they “sometimes had to fight.” Her youngest son got caught up in drugs. She wanted something different for her daughter Miracle — and an ACE scholarship provided it.

Miracle got one-on-one attention, a safe learning environment, and advanced academics at Temple Christian School, Alexander said.

“That she had the opportunity to be in an environment where she could thrive meant the world to us,” said Alexander, who testified in support of Texas’ voucher expansion and hopes the federal program helps even more students. “I’m so excited that other children will have the opportunity for that.”

Colorado Gov. Jared Polis, who supported versions of a state voucher proposal early in his political career, “is excited by the possibility of unlocking new federal tax credits for donations to help low-income kids achieve,” spokesperson Eric Maruyama said. “He encourages the administration to ensure these tax credits lead to improved student outcomes and maintain maximum flexibility for states who choose to participate in this program.”