US Education Secretary pushes school choice for Ferguson in Spokane

Education Secretary Linda McMahon made an appeal to Washington Governor, Bob Ferguson to join the new federal school-choice tax credit program, during her visit to a private school in Spokane on Monday. Named the Education Freedom Tax Credit, this Trump administration initiative seeks to direct billions of dollars towards nonprofit entities offering scholarships for expenses such as tuition, transportation, and tutoring.

The program, as McMahon stated during a press conference, aims to ensure that “Every child, regardless of ZIP code or family income, deserves an education that reflects their family’s values and prepares them to succeed”. The conference took place at the Chesterton Academy of Notre Dame, Spokane Valley, where McMahon was accompanied by Rep. Michael Baumgartner, R-Spokane.

Starting from 2027, taxpayers may qualify for a reimbursement of up to $1,700 for contributions made to federally endorsed “scholarship-granting organizations” in the states that have chosen to participate. This limit is extended to $3,400 for couples filing their taxes jointly. These organizations are then free to allocate scholarships to K-12 students as they see fit for various approved purposes such as after-school programs and private school fees.

Only states opted into the program by the end of the year are eligible for these benefits. At present, 31 states have agreed to participate, with all Republican governors having opted in by summer. The two Democratic governors who have recently agreed to the program are Gov. Kathy Hochul of New York and Gov. Jared Polis of Colorado. Brionna Aho, a spokesperson for Ferguson, stated in a Monday email that the governor is yet to decide.

While critics see the program as a way to channel public money into private schools, supporters argue that the funds are available for both public and private school students in states willing to participate. McMahon, on Monday, visited two religious private schools to highlight the program. Baumgartner emphasized that the primary beneficiaries should be public school students.

The program’s impact is considered by Baumgartner to be “probably the most significant education policy reform, at least in the last 50 years,” as it empowers “every parent and every student and every taxpayer” to take control of their educational future. The Department of Treasury and Internal Revenue Service estimate that by 2030, 2 million kids in participating states could receive $12,000 scholarships annually. Around 96% of U.S. children would be eligible, with the income limit set at three times the median income of the area.

As the number of taxpayers who can claim the credit is unlimited, its influence on the federal budget remains uncertain. The Joint Committee on Taxation, Congress’s nonpartisan official scorekeeper, estimates the program’s cost at about $3 billion to $4 billion annually, potentially rising as more taxpayers participate and totaling $25.9 billion by 2034. Source

The Trump administration expects a higher number of taxpayers to utilize the credit, with the Treasury Department estimating nearly $26 billion in qualified tax deductions by 2030. The Institute on Taxation and Economic Policy, a left-leaning think tank, projected that even if less than half of the qualified taxpayers claim the credit, the annual cost could surpass $100 billion.

This approach, used by the Democrats to promote the purchase of electric vehicles via the Inflation Reduction Act, involves reimbursing taxpayers for specific expenses. An initial estimate from the Joint Committee on Taxation predicted the EV tax credit to cost around $14 billion per year. However, a subsequent estimate calculated the cost to be five times higher.

The new tax credit is regarded as a more efficient method of utilizing federal funds for education by Baumgartner. Meanwhile, McMahon is executing a 2025 executive order by President Donald Trump to dismantle the department she currently leads. An act of Congress is required for the complete closure of the agency.

In contrast, there are critics of the program in Washington, including Chris Reykdal, the head of state public schools. Reykdal shared his concerns with Ferguson, highlighting that the program could lead to shifting public funds into the private education sector, with limited state oversight.

However, Baumgartner criticizes these concerns as a reluctance to innovate and accuses Reykdal of being influenced by the state teachers union. Baumgartner believes that public school students stand to benefit the most from the program and envisions nonprofit groups like the Spokane Public Schools Foundation, West Valley Education Foundation, and the Spokane Scholars Foundation becoming scholarship-granting organizations under the initiative.

Despite these arguments, others in public education remain uncertain about the details of the program’s implementation. Jeff Snell, executive director at the Washington Association of School Administrators, expressed that his group is not rushing to encourage the governor to join the program.

Adding to the skepticism, Shane O’Doherty, Chesterton’s Headmaster, stated that a national network of Chesterton private schools is already exploring the formation of scholarship-granting organizations. O’Doherty asserts that the opportunity to participate exists for the 88 families of his small private school, even if they live in Washington, by donating to other states.