Unions Are Fighting Yesterday’s Education Debate
Leaders of the nation’s largest teachers unions recently sent a letter urging Democratic governors to refrain from participating in the new federal Education Freedom Tax Credit. Their message was all too familiar: They believe this initiative threatens public education and it should be rejected.


Leaders of the nation’s largest teachers unions recently sent a letter urging Democratic governors to refrain from participating in the new federal Education Freedom Tax Credit. Their message was all too familiar: They believe this initiative threatens public education and it should be rejected.
Their characterization is simply inaccurate.
It ignores the fact that this initiative benefits students across every educational setting — not just those attending private schools and risks misleading families about one of the most significant opportunities to expand educational support in generations.
Whenever families gain greater access to educational options, opponents claim that resources will be diverted from public schools. The same talking points have been used against charter schools, tax-credit scholarships, education savings accounts and virtually every reform that gives parents more flexibility in their children’s education. Now they’re being recycled against the Education Freedom Tax Credit.
The facts tell a very different story.
Beginning in 2027, donors with a federal tax liability can receive a dollar-for-dollar federal tax credit of up to $1,700 for donations to qualified scholarship granting organizations. Donors make a qualifying contribution, file their taxes, and receive the credit. Rather than sending that $1,700 to the Internal Revenue Service, they can direct it toward expanding educational opportunity for students in public and private schools and homeschool students — using the tax code to encourage charitable giving that invests directly in students.
Contrary to what opponents suggest, the Education Freedom Tax Credit does not redirect state education funding. It won’t reduce a district’s budget. It won’t force a family to leave a public school. Instead, it creates a new stream of privately funded educational support through charitable giving.


