Gov. Ferguson remains noncommittal on joining federal scholarship program

Washington’s billion-dollar education choice sits in legal limbo

As the clock ticks toward a January 1 deadline, Governor Bob Ferguson remains noncommittal on whether Washington will join a sweeping federal scholarship tax credit program. While 32 other states have already signed on to the initiative, which promises up to $1 billion in potential education funding, Ferguson’s office is currently engaged in a deep-dive review of federal rules that remain, in his words, less than clear.

The program, part of the federal Big Beautiful Bill, creates a pathway for taxpayers to receive a one-for-one reimbursement of up to $1,700 on their federal tax returns when they donate to approved scholarship-granting entities. These organizations would then distribute funds to families for a variety of K-12 expenses, including tutoring, technology, and tuition. Proponents view this as a massive influx of capital for student success, while critics worry about the loss of state-level oversight and the potential diversion of resources toward private education.

For parents and educators, the stakes are immediate. The program is set to launch in 2027, and states must submit their lists of qualifying scholarship organizations by the start of the new year. As reported by KOMO News, Ferguson emphasized that his administration is prioritizing a thorough legal analysis of the IRS guidelines issued on October 1. The governor has stated that he expects to announce a final decision before January 1, noting that it “matters a great deal” to ensure any program adopted by the state ultimately benefits public school students.

The divide over school choice

The debate has split the political map, with Republican-led states largely embracing the initiative early in the year. Democratic governors have been more cautious, though some have begun to participate; New York Governor Kathy Hochul and New Mexico Governor Michelle Lujan Grisham recently announced their states would join the fold. Conversely, Oregon Governor Tina Kotek has publicly opted out, citing a fundamental distrust of the current federal approach.

In Washington, the opposition is anchored by Superintendent of Public Instruction Chris Reykdal. In a recent letter to the governor, Reykdal argued that the program acts as a conduit for public tax dollars to be funneled into private education rather than addressing the documented financial crises facing local school districts. He contends that the current federal framework prevents states from adding necessary restrictions to the scholarship-granting organizations, effectively stripping Washington of its ability to prioritize the specific needs of lower-income households.

“It isn’t free money, and there isn’t an appropriation for it,” Superintendent Chris Reykdal said. “The state doesn’t get a billion dollars. Our school districts don’t get the money.”

Advocacy for academic intervention

While the Superintendent raises alarms about the structure of the credit, others see the program as a vital lifeline for struggling students. Mike Preiner, who leads the Seattle-area nonprofit The Math Agency, argues that the program could provide the necessary funding to expand small-group academic coaching in public schools. His organization points to data suggesting that several years of targeted tutoring can double the number of students meeting state standards in high-poverty environments.

The Washington Student Success Coalition, of which Preiner is a part, maintains that the billion-dollar potential of the program could be focused on students who need it most, including those in lower-income communities and those falling behind in reading and math. They argue that the federal rules—which would prevent states from arbitrarily excluding certain organizations—do not stop individual scholarship groups from establishing their own narrow, student-focused priorities.

The uncertainty of the IRS framework

The primary friction point remains the proposed IRS rules, which dictate that states cannot add restrictions that would exclude otherwise qualifying organizations. For Ferguson, this creates a dilemma: join a program that offers significant financial resources but limits the state's regulatory authority, or abstain and forgo the potential tax-credit donations that could support local educational initiatives.

Gov. Bob Ferguson Faces Pressure To Join Federal School Tax Credit Program

With the January 1 deadline approaching, the administration’s legal team is weighing whether the state can reconcile these federal requirements with Washington’s own educational priorities. Until that review concludes, the path forward for Washington’s participation remains an open question, leaving both advocates for school choice and defenders of the public school budget waiting for a final word from the Governor’s desk.