There’s nothing education wonks love more than slapping the word “innovation” onto an idea. The innovation du jour is Donald Trump’s school-choice tax credit, formally known as the “Educational Choice for Children Act,” which the president signed in July. If you read that title and suspect this is a tax diversion to support families who pay, or want to pay, for private or religious school tuition, you’ve got the idea.
This federal tax credit benefits donors who give to a 501(c)(3) nonprofit “scholarship granting organization” (SGO). These SGOs must award at least 90 percent of donations in scholarships for “qualified” educational expenses, including tuition, fees, academic tutoring, and special needs services, among other items, at public, private, and religious schools. Governors (or other state-designated authorities) must opt into the program annually as well as approve their state’s SGOs. Children in elementary and secondary grades with family incomes of up to 300 percent of their area’s median household income are eligible recipients. This means that wealthier families living in affluent areas will still benefit. By some estimates, nearly 90 percent of the population will qualify.
“Red” state governors, especially in states that already have private school choice programs, are likely to opt in. Maybe that’s why all the political chatter has been about whether “blue” state governors should opt in as well. And, boy, has there been chatter.
