The head of Washington state’s education agency is urging the governor to reject a new federal tax credit that would bring billions of dollars worth of scholarships into the state.

The opposition from Chris Reykdal, the superintendent of public instruction, comes at a time when the state’s school system is facing a budget crisis driven by rising costs and funding cuts. Critics of Reykdal’s opposition say schools need this potential funding source.

Gov. Bob Ferguson has until Jan. 1 — the program’s start date — to decide whether to participate. More than half of states have signed on already.

Reykdal, in an Oct. 9 letter to Ferguson, said that the Trump administration’s program, also known as the Education Freedom Tax Credit, would sidestep state oversight and funnel money into religious institutions that might discriminate against certain groups of people.

 ”We shouldn’t accept that any dollar is worth getting even if it violates our state laws or our moral values,” Reykdal said.

The program would offer federal tax credits up to $1,700 for individuals ($3,400 for married couples) who donate to nonprofits that provide scholarships for things like school tuition, tutoring, after-school programming, and school supplies.

Reykdal’s concerns center around those nonprofits — called “Scholarship Granting Organizations” or SGOs — that the money would flow through. In his letter to Ferguson, Reykdal said the new tax program would not allow states to have any control over which of those groups receive money.

“That includes SGOs that turn students away because of their religion or lack of religion, disability status, sexual orientation, or gender identity,” Reykdal wrote. “It also includes SGOs that provide funding to private organizations with these discriminatory practices.”

He recommended that Ferguson wait a year before deciding to enroll the state in the program.

Critics from across the political spectrum, however, have urged the state to consider participating as soon as possible.

“When the question is, should we give ourselves the opportunity to capture these dollars, or should we automatically let them to flow out of the state? I ask myself, in what world is that a difficult decision?” said Jorge Elorza, CEO of Democrats for Education Reform, a national organization that has been urging blue states to enroll in the tax credit program.

Elorza said that, contrary to Reykdal’s concerns, states would in fact be able to regulate which organizations dole out the money.

Democrats for Education Reform estimates that Washington could bring in about $1.5 billion for school scholarships if 30% of taxpayers participate in the program.

Republicans generally back the program. Twenty-four state House Republicans introduced legislation earlier this year, recommending the governor opt in to the program.

“The current governor is playing games to avoid opting into the federal education tax credit program,” Jim Walsh, head of the state GOP and a representative from Aberdeen, wrote Tuesday on Facebook.

The Washington Student Success Coalition, an education advocacy organization, and the Seattle Metro Chamber, the largest business group in the state, are throwing their support behind the tax as well.

“We’re in a budget shortfall. There’s all these scarcity issues that are facing us right now, but you kind of have to address these things head on, is our choice to play politics or is our choice to help students?” Joe Nguyen, president and CEO of the Seattle Metro Chamber, said. “If our goal is to help students, it should be to get them as much resources as possible.”

A little over a million students across Washington state are enrolled in public, charter, or tribal schools. Another 82,000 are enrolled in private schools. Other Democratic-led states like California are currently holding off on making a decision on enrolling in this new tax program. New York has already chosen to enroll.

Sarah Mizes-Tan is a reporter with KNKX & KUOW. This story comes to you from the Northwest News Network, a collaboration between public media organizations in Oregon and Washington.

It is part of OPB’s broader effort to ensure that everyone in our region has access to quality journalism that informs, entertains and enriches their lives. To learn more, visit our journalism partnerships page.

News Source : https://www.opb.org/article/2026/10/15/washington-schools-chief-urges-governor-to-reject-federal-tax-credit/