There’s $700 million a year in potential new educational funding for most Washington state K-12 students, if only we are willing to accept it.
Beginning Jan. 1, 2027, the Federal Scholarship Tax Credit will allow any Washington state taxpayer to direct up to $1,700 of their federal tax liability to education nonprofits, including public school foundations and many other youth-serving organizations like the ones we represent.
Because it’s a credit rather than a deduction, there is no cost to the taxpayer; it simply redirects dollars they already owe. Recipient organizations can then use these funds to support K-12 students with expenses like tutoring, after-school programming and other forms of educational support. Approximately 90% of Washington students — all but the wealthiest 10% — would be eligible to benefit from this new federal investment.
What’s the catch? Washington must choose to participate, which means the governor must opt in. Thirty-one states already have, including New York, Colorado, Tennessee, North Carolina and Virginia. If Washington doesn’t participate, residents can still take the tax credit: Their donations can go to approved organizations in states that have opted in.
Critics note that some of this money could support private school scholarships, and that’s true. But opting out wouldn’t stop the credit from being used. It could just send those dollars to other states, and leave Washington’s public school students without the tutoring and after-school support they could fund here.
The benefits to our public schools are too compelling to pass up. Research shows that high-quality tutoring and summer learning programs are the most effective ways to increase student learning. We see the impact every day in the kids we work with.
Today, families with resources can invest more in their children’s futures: hiring additional tutoring, enrollment specialists and more. The challenge is that for most students in our state, including the half who come from low-income families, those same opportunities and supports simply aren’t affordable.
A study earlier this year by the Afterschool Alliance found that about 203,000 Washington students are in after-school programs. However, there are another 523,000 who would be in a program, but don’t have the access or resources for that additional support. The Federal Scholarship Tax Credit could provide those resources.
Imagine a middle school student in Burien, Vancouver or Colville who is falling behind in math or reading, and could get tutoring before that struggle follows them into high school. Another student could participate in a summer program their family otherwise couldn’t afford. Another could get the technology they need to take advantage of an opportunity already available in their community.
These are the kinds of investments families with more resources make as a matter of course. This program could give Washingtonians a unique opportunity to leverage additional resources and invest in the values we hold so strongly. We should look for ways to make them available to every family, not just those with the financial flexibility to go it alone.
This kind of support will also help more kids go to college. Nearly 90% of Washington high school students say they want to pursue education after high school, but just over half enroll in college. Gov. Bob Ferguson recently highlighted this concern, noting that Washington ranked 47th in FAFSA completion — an important step for students seeking financial aid for college or career training.
There are still important questions to work through as this new program takes shape. Washington should think carefully about how families learn about and access these scholarships, and how these resources can complement the work already happening in our public schools and communities. But opting in gives us the opportunity to answer those questions and build an approach that works for Washington students.
Gov. Ferguson has a decision to make about whether Washington will participate. We urge him to opt in, especially for those students who have historically had fewer educational opportunities available to them.
No single program is going to eliminate the barriers our students face. We know that from decades of doing this work. But when we have a chance to give more students access to the resources that can help them succeed, we should take it.
