October 2, 2026
Several Democratic governors said for months they would decide on §25F once Treasury published its rules. The rules landed October 1, 2026, and the first answers from New York, Illinois, New Jersey and Massachusetts are the same: we are reviewing them. Governors have until January 1, 2027 to opt in for the first year.
Update, October 27, 2026: Healey and Sherrill, along with Govs. Gavin Newsom of California, Ned Lamont of Connecticut and Gretchen Whitmer of Michigan, sent Treasury Secretary Scott Bessent a letter on October 22 asking for written answers before they decide on 2027: what a participating state may require of SGOs, what the IRS will share with states, and which expenses public school students can use scholarships for. What they asked, and what the rules already say.
Update, October 23, 2026: The House Education and Workforce Committee's Bethlehem field hearing, “More Choices, Brighter Futures: Expanding Education Freedom,” was held on October 23 with Pennsylvania's decision still open, and the committee posted the prepared statements. Chairman Tim Walberg (R-MI) said Pennsylvania “is one of 19 states that has not yet opted in” and urged it to join. Nathan Benefield of the Commonwealth Foundation testified that Pennsylvania already has 250 scholarship organizations “ready and eager to participate” and estimated that if 10 percent of eligible Pennsylvania taxpayers gave the maximum, about $700 million in donations would go to Pennsylvania students, which he called “a projection, not a guaranteed amount.” When he wrote his testimony, he said, Gov. Shapiro had taken no action. Susan Spicka of Education Voters of Pennsylvania testified against the program; Ilen Perez-Valdes of AFC and Eric Paisner of the National Alliance for Public Charter Schools also testified. Shapiro said on October 7 that he would announce Pennsylvania's decision “in the next few weeks.” What the state stands to gain is on our Pennsylvania page.
Update, October 13, 2026: In Michigan, Gov. Gretchen Whitmer's administration is reviewing the rules Treasury issued on October 1, Chalkbeat Detroit reported. Michigan's next governor takes office at noon on January 1, 2027, the same day as the deadline for the advance election, and the two nominees split on it: Republican John James has pledged to opt in on “day one,” and Democrat Jocelyn Benson said committing now would be “reckless and irresponsible” without clearer guidance. The Michigan Association of Non-public Schools has pressed Whitmer's office to opt in for months. Josh Cowen, a Michigan State University researcher and voucher critic, told Chalkbeat that “the opportunity in the credit is real for public schools, but they've got to start moving,” and that he sees “no problem with the state Constitution,” which bars public money for nonpublic schools, because the program runs on federal dollars. What Michigan stands to gain is on our Michigan page.
Update, October 12, 2026: A congressional hearing on school choice is coming to Pennsylvania while Shapiro decides. The U.S. House Education and Workforce Committee has scheduled a field hearing, “More Choices, Brighter Futures: Expanding Education Freedom,” for Friday, October 23 at 10 a.m. at Northampton Community College's Fowler Family Southside Center in Bethlehem. The committee has not posted witnesses or a description yet. Its chairman, Rep. Tim Walberg (R-MI), called the Education Freedom Tax Credit “the first nationwide school choice program in American history” when the rules came out on October 1. Shapiro said on October 7 that he would announce Pennsylvania's decision “in the next few weeks.” What the state stands to gain is on our Pennsylvania page.
Update, October 9, 2026: New York decided. Gov. Kathy Hochul said on October 9 that New York will participate, saying the program can bring millions of dollars to New York students "without taking a single dollar from public schools or our state or local budgets" and that business leaders have committed to use it to support public school students. The state still has to file its advance election by January 1 and send the IRS its SGO list by February 15; our New York page counts it as opted in and tracks the filing. Full story.
Update, October 9, 2026: Pennsylvania Gov. Josh Shapiro put a timeline on his decision at the October 7 gubernatorial debate. “We're continuing to digest the federal regulations, but I've also expressed my openness to this,” he said. “We received dozens and dozens of pages of specific federal regulations that we now need to marry up with our rules here in the Commonwealth of Pennsylvania,” he said, adding that the state has to make sure the federal program does not interfere with its own school choice tax credit programs. “We're looking at it carefully, and in the next few weeks, we'll make our announcement.” Pennsylvania's next governor takes office on January 19, 2027, after the January 1 election deadline, so the 2027 decision is Shapiro's either way; Republican nominee Stacy Garrity said she would opt in on “Day 1” (City & State PA). In Massachusetts, at the first Healey-Minogue debate on October 8, Healey said a tax credit is “not an education plan,” and Minogue again said he would opt in (CommonWealth Beacon).
Update, October 8, 2026: Connecticut Gov. Ned Lamont told reporters on October 6 that he is asking federal officials for clarification this week and that “I think we'll know within a month or so.” He wants to be sure the program “does not discriminate in any way against public education” and is carefully audited. That puts a decision in early November, ahead of the January 1 deadline. Full story.
Update, October 8, 2026: In New York, the State Education Department said on October 7 that “the decision on whether New York will participate in the federal tax credit scholarship program rests with the Governor,” and Hochul's office again said it is carefully reviewing the proposed rules. The leaders of both legislative chambers have now come out against participating: Assembly Speaker Carl Heastie said on October 6 that “New York should opt out of the federal voucher program,” and Senate Majority Leader Andrea Stewart-Cousins said on October 7 that the rules “would undercut New York's ability to establish meaningful guardrails.” On the other side, the Scholarships for All New Yorkers coalition, which includes Agudath Israel of America and the Invest in Education Foundation, is urging Hochul to opt in. New York residents can give and claim the credit either way; what an opt-in decides is whether New York students can receive the scholarships. (Nexstar, Oct. 7.)
Update, October 7, 2026: In New Jersey, the three Assembly Republicans behind A4777, the bill that would require the state to participate, asked Gov. Sherrill on October 5 to opt in now that the rules are out. Assemblywoman Dawn Fantasia said the program could help students in districts that have lost state aid, "increasing access to tutoring, books, school supplies, special education services and more." The lawmakers put what New Jersey stands to lose at an estimated $911 million in scholarship funding; that is their estimate, not an official figure. Their statement also called New York the latest state to participate, but New York has not filed its election, and Hochul's office says it is still reviewing the rules. A4777 is in the Assembly Education Committee, and Sherrill has not announced a decision.
Update, October 5, 2026: In Massachusetts, AFT Massachusetts and more than 40 groups, including the state superintendents' and school committees' associations, rallied at the State House to urge Gov. Healey to opt out. AFT Massachusetts president Jessica Tang said the regulations ban states from setting “standards or guardrails.” That is half right. The temporary rules bar a state from narrowing the schools or expenses a scholarship can cover, but they also require every participating state to impose application, documentation and financial-reporting requirements tailored to the federal tests and to fraud prevention (§ 1.25F-5T(e)(1)). The state Executive Office of Education said it is “reviewing the temporary and proposed regulations.” Republican nominee Mike Minogue has said he would opt in. (Boston Herald, Oct. 5.)
Update, October 5, 2026: Oregon Gov. Tina Kotek's office told Chalkbeat she is reviewing the rules but has no plans to change her position against participating. The Boston Globe editorial board urged Healey on October 2 to opt in (“Take the money, governor”), citing an American Federation for Children estimate of $459 million in 2027 if 10% of eligible Massachusetts taxpayers give. On October 3, Lindsey Burke, deputy chief of staff for policy and programs at the U.S. Department of Education, told Fox News Digital that the pull of donors giving to other states' scholarship groups “is going to encourage all 50 states to ultimately opt in.” In Illinois, church leaders and the Catholic Conference are pressing Pritzker; in Virginia, the teachers union asked Spanberger not to file the state's list.
For most of 2026, the standard answer from undecided Democratic governors was that they could not decide on the Education Freedom Tax Credit until Treasury explained how it would work. Those rules came out on October 1 and were published in the Federal Register on October 2. The first round of responses, given to reporters on Thursday, shows the waiting is not over yet: every governor's office that answered said it is reviewing the regulations, and none announced a decision.
New York. Gov. Kathy Hochul is the closest to a yes. She said in May that New York would take part unless the rules contained "poison pills," but the state has never filed the advance election that would put it on the IRS list. Chalkbeat reported that she "declined Thursday to make it official." Her spokesperson, Jonah Allon, told Jewish Insider: "If properly implemented, and structured so all students can benefit, the federal scholarship tax credit can expand opportunity without diverting funding from public schools, state or local budgets. The Administration is carefully reviewing the proposed regulations to ensure implementation would achieve these goals." Our New York page keeps the state as committed, not opted in.
Illinois. Gov. JB Pritzker had pointed to the missing federal rules as a reason not to act. His office said Thursday it "is currently reviewing the newly released guidance" and "will carefully evaluate the proposed regulations and make a decision grounded in what best supports working families, students, and our public schools" (statement published by Capitol Fax). Background on the Illinois debate is on our Illinois page.
New Jersey. A spokesperson for Gov. Mikie Sherrill, who has stayed noncommittal since May, said: "As we carefully review this federal guidance, we are examining who the program would serve, which opportunities are available, and how it could best benefit public school students."
Massachusetts. Gov. Maura Healey, whose administration said in June it was waiting on Treasury, was asked about the rules Thursday. "What I understand is that Treasury has released temporary regulations. I don't know what that means," she said, according to State House News Service. "We'll have to see what these regulations say, and also to get more clarity about what they mean by temporary." The short answer: the temporary regulations cover the launch mechanics (state elections, SGO lists, IRS registration, donor receipts) and take effect without a comment period, applying from September 1, 2026, while the longer proposed rule is open for comment until December 1.
Others. Washington, D.C.'s Office of the State Superintendent of Education said it is "reviewing the temporary regulations and proposed rulemaking." Jewish Insider reported that the offices of Pennsylvania Gov. Josh Shapiro and Maryland Gov. Wes Moore did not respond to requests for comment. By Chalkbeat's count, 18 Democratic governors besides Hochul have yet to make a decision. Colorado's Jared Polis is still the only sitting Democratic governor to have opted a state in. Virginia, Kansas, Kentucky and North Carolina also have Democratic governors and are on the IRS list, but they got there through a predecessor's election or a legislative veto override.
What the rules answer for them. Two concerns came up again and again in these governors' earlier statements: whether public school students can benefit, and whether a state could shape the program. On the first, Treasury says plainly that public school students can receive scholarships, and the expense list in the law (borrowed from Coverdell education savings accounts) includes tutoring and special needs services; Treasury's detailed guidance on which expenses qualify is still to come. On the second, the answer is no: a participating state may not impose rules more restrictive than §25F and must list every qualifying SGO located in the state that asks. Supporters, including the Teach Coalition and Agudath Israel of America, argue the rules remove the last reason to wait. The American Federation of Teachers and the National Education Association are urging governors to stay out.
The clock. To take part in 2027, a governor makes the advance election (IRS Form 15714) by January 1, 2027, and the state then submits its SGO list to the IRS by February 15, 2027 (full calendar). A state that sits out does not stop its residents from claiming the credit: they can still give to SGOs serving students in any of the 30 participating states. What a state gives up is scholarship money for its own students. For the state-by-state picture, see the participation map.
Sources
- U.S. House Committee on Education and Workforce: field hearing, More Choices, Brighter Futures: Expanding Education Freedom (Bethlehem, Pa., Oct. 23, 2026)
- U.S. House Committee on Education and Workforce (Oct. 1, 2026): Expanding School Choice Nationwide
- City & State PA (Oct. 7, 2026): 7 takeaways from the debate between Gov. Josh Shapiro and Treasurer Stacy Garrity
- CommonWealth Beacon (Oct. 8, 2026): Trump is the elephant in the room during first Healey-Minogue debate
- Nexstar / WTNH (Oct. 7, 2026): New York mulls Federal Scholarship Tax Credit program
- WRNJ Radio (Oct. 5, 2026): NJ Republican lawmakers urge Gov. Sherrill to opt into federal education tax credit program
- Boston Herald (Oct. 5, 2026): Advocates urge Healey to opt out of Trump's education tax credit
- Chalkbeat (Oct. 2, 2026): Education tax credit rules are here. Will they lure Democratic governors off the fence?
- Jewish Insider (Oct. 2026): Democratic governors face deadline on federal education tax credit
- Capitol Fax (Oct. 1, 2026): Pritzker office statement on the federal rules
- State House News Service via WWLP / Yahoo News (Oct. 2, 2026): Divisions remain after feds roll out scholarship tax credit regs
- Federal Register, Oct. 2, 2026: Federal Scholarship Tax Credit, temporary regulations, 91 FR 62655
Originally published by EFTC Credit. Reproduced with permission.
