Michigan Lawmakers Push Federal Education Tax Credit Program Amid Concerns Over West Michigan Reading Scores
Michigan lawmakers are pushing Governor Whitmer to opt the state into a federal education tax credit program that would allow donors to receive up to $1,700 in tax breaks for contributing to student scholarship funds. The push comes as Michigan ranks 44th in fourth grade reading scores, and the program would only be available starting in 2027 if the state opts in.
State Officials Urge Governor to Opt Michigan Into Federal Scholarship Program as Fourth Grade Reading Scores Lag Nationally
LANSING — Michigan state lawmakers are actively pushing Governor Gretchen Whitmer to opt the state into a new federal education program that would allow donors to receive tax credits for contributing to student scholarship funds. The program, called the Education Freedom Tax Credit, would give Michiganders up to $1,700 in tax breaks for donations that go toward scholarships for K-12 students.
The push comes as Michigan continues to struggle with fourth grade reading scores, ranking near the bottom of the nation at 44th out of 50 states. State officials say the federal program could provide an additional tool to help improve literacy across the state.
What the Program Does
Under the Education Freedom Tax Credit program, approved by Congress last year, donors can contribute to scholarship-granting organizations and receive tax credits of up to $1,700. The donated money then goes to organizations that grant scholarships to students.
Parents who receive scholarships can use the money for various educational expenses, including:
- Tuition for private schools or charter schools
- Tutoring and other educational support services
- Homeschooling expenses
U.S. Education Secretary Linda McMahon, who is part of the Trump administration, has been actively promoting the program during visits to Michigan schools. During a stop at Hamtramck Academy in March 2026, McMahon called on Governor Whitmer to "unleash educational excellence for every child" by participating in the federal school choice program.
"There are no caps on how much scholarship money a student can receive," McMahon said at the event. "The scholarship organization will determine the amount based on the mission of the organization."
The tax credits become available starting in 2027 for Michigan families.
Lawmakers Make Their Case
Michigan House Speaker Matt Hall, a Republican from Richland Township, has been leading the push for Governor Whitmer to opt Michigan into the program. Hall argues that if the state does not join, donations from Michigan taxpayers will go toward students in other states.
"If Michigan's Governor Gretchen Whitmer does not opt in to this scholarship program, then those tax breaks that so many people will get, will go to kids in other states," Hall said.
Hall is working with Governor Whitmer on literacy improvement efforts and sees the federal program as another tool to help improve student achievement. He emphasized that the scholarships are available to students regardless of whether they attend public schools, private schools, or are being homeschooled.
"Whether you're a public school student, or a private school student, you can utilize these scholarships. And I think that's another tool that will really help us improve literacy in Michigan, and improve our education system in Michigan," Hall said.
Republican state representatives who attended McMahon's event include Matt Maddock of Milford, Alicia St. Germaine of Harrison Township, Joseph Pavlov of Kimball, and Mike Harris of Clarkston. State Rep. Tim Kelly from Saginaw also spoke at the event, stating that the only reason not to opt into the program would be "spite."
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. A spokesperson for the Governor's Office stated that the administration is waiting for guidance from the U.S. Treasury Department.
Whitmer has historically taken a cautious approach to school choice initiatives, having vetoed similar state efforts to pass a tax-credit scholarship program in the past. She has also vetoed private school choice measures at the state level.
The Governor's Office did not provide additional comments when contacted for this story.
Education Officials Express Concerns
Not everyone supports the federal program. State Superintendent of Public Instruction Glenn Maleyko did not directly answer whether he wants Michigan to opt into the program.
"My priority is adequate and equitable funding for public schools in Michigan," Maleyko said in a statement. "I believe federal resources should be devoted to those priorities."
Katherine Nitz, media relations coordinator for the Michigan Education Justice Coalition, told reporters that 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.
Nitz emphasized that the Michigan Constitution prohibits using public funds for private school attendance. While the federal program operates through tax credits rather than direct public funding, critics argue it could still have the effect of diverting resources away from public schools.
Current Michigan Education Landscape
Approximately one in four Michigan public K-12 students currently 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 homeschooled their children without having to notify the local district or state about their choice.
The federal program has income restrictions. According to federal fact sheets, 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.
So far, 27 states have opted into the program, according to McMahon. She noted that only two Democratic governors — in Colorado and North Carolina — have said their states will likely join.
Impact on West Michigan Families
For West Michigan families, the potential impact of this program could be significant. Communities across Kent, Kalamazoo, Allegan, and Oceana counties have faced challenges with student performance, particularly in reading and mathematics.
Grand Rapids-area schools, which have seen efforts to improve performance through various initiatives, could see additional options for families seeking educational alternatives. Kalamazoo schools have also been working to address achievement gaps and improve overall student outcomes.
The program would not require Governor Whitmer to make a decision immediately. Families interested in the program would need to wait until 2027 when the tax credits become available. However, advocates argue that Michigan families would only see the benefits if the state opts in.
What Michigan Families Need to Know
Michigan families considering the program should understand several key points:
- 1.Tax Credits Start in 2027: The tax credits would not be available until the program begins next year, assuming Governor Whitmer opts Michigan into the program.
- 1.No Cap on Scholarship Amounts: Scholarships can be of varying amounts based on the mission of the scholarship-granting organization.
- 1.Federal Income Restrictions: Students must meet federal income requirements, with household income capped at 300% of the area's median gross income.
- 1.Public Schools Still Available: The program does not require families to leave public schools. Parents can use scholarships for tutoring or other educational support services at their current school.
- 1.State Guidance Pending: Governor Whitmer's office is waiting for guidance from the U.S. Treasury Department before making a final decision.
The Bigger Picture
The push for Michigan to opt into the Education Freedom Tax Credit reflects ongoing tensions in the state's education policy debates. Republicans argue that expanding educational options will help struggling students and improve overall literacy. Democrats and education advocates worry that such programs undermine public school funding and set the stage for further privatization.
As Michigan approaches the 2027 eligibility date for the program, families across West Michigan and throughout the state will be watching to see how Governor Whitmer decides to move forward with this federal initiative.
For now, the debate continues at the state capitol, with lawmakers from both parties making their cases to Governor Whitmer. The decision could have lasting implications for Michigan families seeking educational options for their children.
Sources
AI-assisted reporting