Dan Cox says he would opt Maryland into federal Scholarship tax credit

Dan Cox says he would opt Maryland into federal Scholarship tax credit

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The Governor’s decision on the Federal Scholarship Tax Credit remains uncertain

“I would certainly opt in as governor,” Dan Cox said, framing the choice as a simple matter of providing help to Maryland students. The Republican gubernatorial candidate is making a central campaign promise to enroll the state in the Federal Scholarship Tax Credit, a program that currently sits in limbo for Maryland families due to the inaction of Governor Wes Moore, Fox Baltimore reported.

The stakes for Maryland households involve a potential annual tax credit of up to $1,700. Under the provisions of the “Big Beautiful Bill” passed in Washington, D.C., individual taxpayers can claim this credit by contributing to an IRS-approved Scholarship Granting Organization (SGO). These funds are intended to assist K-12 students with various educational expenses, including private school tuition, tutoring, after-school programs, textbooks, and classroom supplies. However, the program cannot benefit Maryland residents unless the state governor formally opts in.

As of October 27, the IRS confirmed that 31 states, led by both Republicans and Democrats, have already joined the program. Maryland is not among them. While Governor Moore has not officially announced his intentions regarding the 2027 rollout, his past comments suggest significant hesitation. Hoodline.com noted that Maryland families remain in a state of uncertainty as the election approaches and the deadline for enrollment nears.

A clash over public versus private education funding

The debate over the tax credit has become a proxy for a much larger ideological struggle regarding the future of public education. Governor Moore has been vocal in his opposition to the mechanism. While speaking at the annual convention for the American Federation of Teachers in Washington, D.C., on July 19, Moore characterized the program as a “tax scheme.” His office later confirmed that this specific remark was directed at the Federal Scholarship Tax Credit.

Moore argued that the legislation effectively “takes public funding and steers it towards private schools,” a sentiment that aligns with concerns raised by the Maryland State Education Association. The teachers’ union has argued that the program could place a “greater strain on the federal education budget” and might encourage families to “abandon public education,” ultimately stripping resources from the public school system.

Maryland governor s race could decide fate of school scholarship credit
Photo: hoodline.com

Dan Cox has dismissed these concerns, arguing that the Governor is misrepresenting the nature of the credit. According to Cox, the program is a bipartisan tool designed to ensure money follows the student and goes directly to the parent to be spent on education.

“That’s not true. This is a bipartisan issue, and it’s really about making sure students have the funds that they need. It follows the student, it comes to the parent, and it has to be spent on their education. It’s a great tool,” Cox said.

The tension is not unique to Maryland. Hoodline.com reported that while some Democratic governors, such as Colorado’s Jared Polis and New York’s Kathy Hochul, have opted in, others have expressed deep skepticism. New York Governor Kathy Hochul supported the move, suggesting it could bring millions to students without impacting state budgets, though this view was rejected by local union leadership. In Michigan, officials have raised questions about whether administering such a program might conflict with state constitutional requirements or divert state resources to private institutions.

Deadlines and the path to 2027

The timing of this political standoff is critical. For the tax credits to be available for the upcoming cycle, Governor Moore has until January 1 to enroll Maryland in the program. If the decision to opt in is made, the credits would become available to taxpayers starting in January 2027.

Governor’s race could determine whether Maryland joins federal scholarship program

Currently, the path forward depends heavily on the results of the gubernatorial election. If Cox is elected, he has pledged an immediate enrollment. If Moore remains in office, the state may continue to withhold participation, leaving Maryland families unable to access the federal funds currently being utilized in 31 other states.

The Governor’s office has not responded to multiple requests for an interview regarding his specific intentions for the tax credit, according to reports from Fox Baltimore.

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