A Practical Decision for Blue and Purple State Leaders
Washington, DC — As Governors across the country weigh the benefits of opting into the newly passed Educational Choice for Children Act (ECCA), a national tax credit scholarship program, Democrats for Education Reform (DFER) is urging governors and their offices to engage with the program and to prepare to opt-in. While many leaders in Democratic states may disagree with the broader federal approach to education policy and spending, refusing to engage with this program would result in the loss of resources that would otherwise benefit students and families in their respective states.
“Democratic governors don’t need to agree with every aspect of federal education policy to make a smart choice for their state,” said Jorge Elorza, CEO of Democrats for Education Reform. “Opting in to this program doesn’t compromise values — it ensures families aren’t left out simply because of politics. Our students deserve every available resource, and this is one more tool to support them.”
“Now that ECCA has passed, Governors should shape the way it is implemented so that it meets the needs of underserved communities and families. Democratic leaders, equity advocates, and community organizations now have an opportunity to ensure that these new resources are deployed in ways that actually serve families who need it the most,” continued Elorza.
The program allows individuals to receive a dollar-for-dollar federal tax credit — up to $1,700 — for donations made to nonprofit scholarship granting organizations (SGOs). These organizations, in turn, fund scholarships and education-related services such as academic tutoring, exam fees, books, and other academic support for students in public and private schools. That flexibility gives states and their SGOs the ability to support students in ways that align with their priorities and values.
If states choose not to participate, the federal tax credits still apply — but the dollars will flow to programs in other states. That means that non-participating states will effectively subsidize educational services outside their own communities, while students in their home states see none of the benefit.
This situation echoes early resistance to Medicaid expansion, where ideological disagreements led to tangible losses in health care access and federal dollars. In this case, ideological opposition would limit access and financial support for critical educational needs.
DFER offers three core factors for governors to consider:
- There’s no state cost.
Participation requires no direct expenditure and has no impact on state budgets. The funding mechanism is entirely federal and based on voluntary donations. - It offers flexibility to meet local needs.
The law is broader than some state tax credit programs that focus primarily, or solely, on providing scholarships to cover private school tuition. Under ECCA, states and SGOs will be able to support both public and private school students with financial support to cover services such as tutoring, out-of-school enrichment, and to help cover the needs of students with disabilities, among other uses. - Non-participation doesn’t stop the money — it just redirects it.
Taxpayers in every state can still donate and claim the credit. In states that do not opt in, those funds will simply benefit students elsewhere.
DFER recognizes that this issue, like so many others in our society, has become politicized. Nonetheless, the practical stakes are real. Governors can still advance a state-specific education agenda while ensuring students in their states are not denied support that their own constituents are helping to fund through this federal program. Opting in would not be an endorsement of President Trump’s education agenda — it’s a strategic move to keep resources working for your communities.
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