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Education Reform Group Presses Blue State Governors to Opt In to Federal Voucher Plan

Governors must decide whether to enroll their states in a $5 billion tax-credit voucher program with teachers’ unions warning that it siphons resources from public education.

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Overview

  • Democrats for Education Reform CEO Jorge Elorza pitched the program as “free money” that could help the party regain support among working-class Black and Latino voters.
  • Embedded in the 2025 budget reconciliation bill, the plan starts in 2027 and caps federal tax credits at $5 billion per year through 2029.
  • Families earning less than three times their area’s median income can apply for scholarships funded by charitable donations to cover private tuition, textbooks, tutoring and exam fees.
  • Democratic governors in Maryland, Pennsylvania, Connecticut and Hawaii have not announced opt-in decisions as they evaluate potential impacts on public school systems.
  • Teachers’ unions, including the American Federation of Teachers and California Teachers Association, argue that vouchers threaten public education by diverting funds away from traditional schools.