Democratic governors who have traditionally opposed school choice initiatives will face mounting competitive pressure to join President Donald Trump's landmark Federal Scholarship Tax Credit (FSTC) program as states weigh whether to participate and New York Gov. Kathy Hochul moves to formally opt in, a top Department of Education official told Fox News Digital.
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official → oppose → Digital
"I think that pressure is real and is going to encourage all 50 states to ultimately opt in," said Lindsey Burke, deputy chief of staff for policy and programs at the U.S. Department of Education.
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Burke → think → Education
Burke's comments follow the Department of the Treasury and the Internal Revenue Service issuing proposed regulations Oct. 1 to implement the new federal program, paving the way for America's first nationwide school choice framework.
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Department → follow → framework
The initiative — also referred to as the Education Freedom Tax Credit — allows individual taxpayers to receive up to a $1,700 dollar-for-dollar federal tax credit for donations made to non-profit scholarship-granting organizations (SGOs).
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taxpayers → refer → organizations
However, state governors must formally opt into the program for their residents and local educational organizations to participate and receive the funds.
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residents → opt → funds
The IRS recently reported that more than half of U.S. states have already signed up to participate.
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half → report → states
Burke noted that "competitive pressure" will ultimately force blue states to capture the influx of private donations.
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pressure → note → donations
"If you're in California, for example… a donor will be able to donate to scholarship-granting organizations outside of California, and they will get their tax credit as a result of that," Burke said.
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Burke → donate → that
"So, unless a state like California decides to opt in, then they're going to have donors donating outside of their state and their students in California not benefiting."
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students → decide → California
Education Secretary Linda McMahon previously noted that some Democratic leaders have resisted the federal scholarship program simply because "it’s a Trump measure."
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it → note → program
McMahon pointed to Kentucky Gov. Andy Beshear, who had expressed concerns that school choice programs could divert resources from public education — money that opponents argue should instead go toward teacher salaries, recruiting staff and upgrading facilities.
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opponents → point → facilities
Kentucky has since formally joined the federal program after the state legislature overrode Beshear's veto of opt-in legislation.
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legislature → join → legislation
Unlike traditional voucher programs that draw directly from municipal or state public education funds, tax-credit scholarships allow taxpayers to redirect a portion of their federal tax liability toward non-profit funding for student scholarships.
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taxpayers → draw → scholarships
The federal framework leaves the opt-in decision to state governors, enabling local families to access federally incentivized scholarship dollars.
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framework → leave → dollars
Sydney Altfield, CEO of Teach Coalition, told Fox News Digital that the structural design of the tax credit creates a financial incentive that blue-state governors cannot afford to ignore.
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governors → tell → that
"I think even just today there might have been a news article where Gov. Jared Polis from Colorado is calling on blue states not to opt in so that he can take their money," Altfield added.
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Altfield → think → money
If other blue states don't want to opt in, I can only imagine that Gov. Hochul is going to do everything in her power to get more money into the state.
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Hochul → want → state
She always says she wants to put money back into the pockets of New Yorkers, and this is doing just that."
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this → say → that
Colorado Gov. Jared Polis became the first Democratic governor to announce that his state would participate in the federal program in late 2025, and Colorado subsequently formally opted in.
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Colorado → become → 2025
Dismissing critics at the time, Polis told local media he "would be crazy not to" join, pointing out that the program could help families pay for tutoring, after-school programs and summer enrichment.
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families → dismiss → school
In May, Emma Wallner, a spokesperson for New York Gov. Kathy Hochul, confirmed that the governor intends to opt New York into the program — making it the 30th state to participate.
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it → confirm → program
"Governor Hochul is supportive of the federal tax credit scholarship and its potential to help New York students and schools," Wallner told Fox News Digital.
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Wallner → help → Digital
"Our office awaits information from the federal government on the program and
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office → await → program
will thoroughly review the details of the policy for poison pills that could harm New York’s education system.
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that → review → system
Fox News Digital reached out again for new comment from Governor Hochul, as well as to Governor Polis.
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Digital → reach → Polis
Despite Hochul's stated intention to participate, major labor groups and teachers unions remain staunchly opposed.
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groups → state → intention
A coalition of teachers unions and other public school advocates launched a petition demanding that Hochul reject the program.
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Hochul → launch → program
"Gov. Hochul plans to opt New York starting in 2027.
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Hochul → plan → 2027
But most New Yorkers haven’t even heard of this program or know how it will affect New York," the petition states.
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petition → hear → York
"Tax dollars would help pay private tuition for families who never used public schools.
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who → help → schools
For decades, school choice initiatives have remained a third-rail issue for many Democrats, who contend that choice models weaken public school systems and undermine labor unions.
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models → remain → unions
However, growing parent demand for alternative education options — including charter schools, private schooling, and homeschooling following the COVID-19 pandemic — has pushed several prominent Democrats to re-evaluate their positions.
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demand → grow → positions
Trump's landmark school choice program comes amid major big blue city school districts struggling to retain students since the coronavirus pandemic.
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program → come → pandemic
"This is pressure of money flowing into your state.
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This → flow → state
This is the pressure of educational opportunities increasing for your communities," Altfield said, expanding on Burke’s comments.
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Altfield → increase → comments
"This is pressure of putting money back in the pockets of parents, back in the pockets of families who are struggling the most.
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who → put → families
This is the best kind of pressure to have."
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This → have → pressure