Michigan Education Coalition Urges Governor to Reject Federal School Voucher Tax Credit Program

Michigan Education Coalition Opposes Federal Scholarship Tax Credit Program

LANSING — Advocates for Michigan's public schools are urging Governor Gretchen Whitmer to reject a proposed federal program that would provide tax credits for donations to support private school scholarships. The Michigan Education Justice Coalition says the proposal could weaken public education funding and benefit wealthier families while diverting resources from Michigan's already struggling public schools.

What the Program Would Do

The federal program, known as the Education Freedom Tax Credit, was created by the Trump administration and approved by Congress last year. Under the program, people can donate to scholarship-granting organizations and receive up to $1,700 in tax credits. The scholarship organization determines how much money a student can receive "based on the mission" of the organization, according to a fact sheet from the federal Treasury and Education Departments.

The tax credit is available starting in 2027. Michigan House Speaker Matt Hall, R-Richland Township, and State Rep. Tim Kelly, R-Saginaw, have been encouraging Governor Whitmer to sign Michigan up for the program. Hall told reporters, "If Michigan does not opt in, that means that money that people are saving through the tax credit will go to kids in other states and that doesn't make much sense. We want Michigan to benefit."

Governor Whitmer's Position

Governor Whitmer has previously said the program is a "high-level talking point" and that she needs more information before making a decision. At her State of the State address last month, Whitmer addressed Michigan's literacy struggles, noting that "Boys are behind girls at every age. Michigan is 44th in fourth-grade reading ... this is a serious problem."

A spokesperson for the governor said Friday she had nothing to add from Whitmer's previous comments about the program. Governor Whitmer's office told CBS News Detroit they're awaiting tax guidance from the federal government before making a decision.

Education Secretary McMahon's Push

US Education Secretary Linda McMahon visited Hamtramck Friday to promote the tax credit scholarship program. She stood with House Speaker Matt Hall and State Rep. Tim Kelly at Hamtramck Academy, a charter school that enrolls about 550 students.

McMahon is calling on Governor Whitmer to opt the state into a program that would give donors tax credits for contributing to scholarship funds for K-12 students, including those attending public schools, religious schools, other private schools and homeschools. Students could use the money for tuition or other educational expenses.

"The Education Freedom Tax Credit isn't some distant idea, it's a homegrown solution that puts Michigan families in charge," McMahon said at Hamtramck Academy. "The money goes into scholarship-granting organizations. Parents apply there. Then money is given to parents, whether they want to move a child or procure some of these other services."

McMahon posted on social media urging the state to act, linking to a Detroit Free Press opinion piece she wrote about why the state should join. She wrote: "Michiganders have a unique opportunity to access education freedom, but Gov. Whitmer refuses to act!"

So far, 27 states have opted in, according to McMahon. Support for the program has largely come from Republicans. Only two Democratic governors — in Colorado and North Carolina — have said their states will likely join, according to Chalkbeat.

Income Restrictions and Eligibility

According to the federal fact sheet, students eligible to enroll in a public elementary or secondary school and from a household with income not greater than 300% of the area's median gross income qualify for a scholarship through the Education Freedom Tax Credit.

"There are income restrictions for which children could benefit from the program," according to the fact sheet. The scholarship organization will determine the amount based on the mission of the organization.

Michigan Education Justice Coalition Opposition

The Michigan Education Justice Coalition has appeared at the state capitol to oppose Michigan's participation in the program. Coalition member Jess Newman told Bridge Michigan that the vouchers would hurt Michigan's traditional public schools.

"We're already fighting for enough funding as it is, this voucher scheme would be a match that would just light the system on fire," Newman said. "It's unconstitutional, it's risky, and puts our entire public school system in jeopardy at a time when we should be doubling and tripling down on the funding that we are putting into our system."

Katherine Nitz, media relations coordinator for the Michigan Education Justice Coalition, told Bridge Michigan the program would "weaken public schools" and "sets the stage for privatization."

"This would wind up gutting public school funding, which is already tenuous in Michigan," Nitz said. "Public funds should not go to private schools. Private schools are allowed to pick their students. That means the students who have more needs, disabilities and things like that are not in those spaces."

Detroit Federation of Teachers Concerns

The Detroit Federation of Teachers has expressed skepticism about the program. In a statement to CBS News Detroit, the union said: "Michigan families already have school choice and freedom, with hundreds of charter schools, public, and private schools available. This $1,700 credit falls far short of covering tuition, transportation, and hidden costs, while this voucher program only widens equity gaps — especially for students with disabilities in underfunded public schools."

The union added: "The real question is not about choice or freedom — it's about accountability. Shouldn't public dollars support public schools that serve all students and are governed by elected boards and transparency laws, rather than private institutions that aren't held to the same oversight and standards?"

State Superintendent's Stance

State Superintendent Glenn Maleyko did not directly answer whether he wants the state to opt into the program. In a statement to Bridge Michigan, Maleyko said: "My priority is adequate and equitable funding for public schools in Michigan. I believe federal resources should be devoted to those priorities."

Republican Support

Republican state representatives have been active in promoting the program. Besides House Speaker Matt Hall and State Rep. Tim Kelly, Republican representatives Matt Maddock of Milford, Alicia St. Germaine of Harrison Township, Joseph Pavlov of Kimball and Mike Harris of Clarkston also attended McMahon's event.

McMahon's spokesperson said she needs more tax guidance information before deciding whether to enter Michigan into the federal program. Earlier this month, Whitmer reportedly said she needs more information before making a decision.

Constitutional Concerns

The Michigan Constitution prohibits using public funds for private school attendance. This has been a central concern for opponents of the program.

When asked about that by a Detroit News reporter Friday, McMahon said it's possible that state leaders wouldn't have to allow private schools to benefit. That's because state officials would be responsible for choosing eligible scholarship granting organizations to participate.

Current Participation

The IRS says as of March 17, 27 mostly Republican-led states had signed up for the program. Michigan does not currently have a state private school choice program, according to a previous Bridge Michigan analysis.

Roughly 1 in 4 Michigan public K-12 students attend a charter school or use the state's choice program to attend a school outside their local district. Michigan families are also allowed to homeschool their children and do not have to notify the local district or state about this choice.

Federal Context

The program is made possible because of the federal One Big Beautiful Bill Act, signed last summer. School choice advocates in Michigan have pushed for years to get a similar scheme in state law.

In 2021, Whitmer vetoed a measure that would have created a similar program on the state level. That veto came after Democrats and Republicans had different ideas for how to address Michigan's struggling schools.

What This Means for West Michigan Families

For families across West Michigan — from Grand Rapids to Kalamazoo to Muskegon — this decision will have implications for their children's education options. The program would allow Michigan families to receive tax credits for donations to scholarship funds, but only if Governor Whitmer opts Michigan into the federal program.

Without state participation, Michigan families can still receive federal tax credits by donating directly, but according to House Speaker Hall, that money would support states that have opted into the program rather than Michigan.

The Detroit Federation of Teachers and Michigan Education Justice Coalition argue that the program represents a threat to public education funding and could widen equity gaps, particularly for students with disabilities who are disproportionately served in underfunded public schools.

Next Steps

Governor Whitmer's office told CBS News Detroit they're awaiting tax guidance from the federal government before making a decision. The program would take effect in 2027 if Michigan opts in.

Michigan House Speaker Matt Hall remains hopeful that Whitmer will see the program as another tool to improve student achievement. "If they're in a failing school, this could be the lifeline for their family with these scholarships to go into another school that will help unlock their potential," Hall said. "So this is another tool that Michigan needs, and I'm very hopeful that Gov. Whitmer will see that, to see what other governors have seen and opt us in."

The education debate continues as Michigan leaders weigh the federal program's potential benefits against concerns about public school funding and constitutional issues.