News Story

Whitmer undecided on federal scholarship program for K-12 students

Without her approval, Michigan families can’t use this federal tax benefit

Gov. Gretchen Whitmer has not yet decided whether Michigan will participate in a new federal program that could help parents pay for school tuition, tutoring, or other educational services, according to recent comments she made to news media. The governor said she is waiting for the Trump administration to provide tax guidance.

”I’m always going to leverage as much in terms of investment as we can for education and help people keep money in their pockets, but there’s very little actual detail that’s been released on this particular subject,” Whitmer told The Detroit News during a May 4 appearance in Troy for a school lunch event.

The Education Freedom Tax Credit was included in the Working Families Tax Cut Act passed last year. Taxpayers who donate to organizations that fund scholarships for K-12 students can receive a dollar-for-dollar credit on their federal tax return, up to $1,700, according to the U.S. Department of Education. Scholarship-granting organizations then distribute funds, subject to various requirements.

Families can receive those scholarships only if, by the start of the year, their state has opted in with the federal government and reported a list of approved scholarship granting organizations.

So far, 22 states, including Michigan, have not opted in. Only two Democratic governors – Jared Polis of Colorado and Josh Stein of North Carolina – have said their state will participate.

Polis and Stein did not respond to emails seeking comment.

“By opting into the federal tax credit program, the governor would allow families across the state to benefit from scholarships that could be used for a variety of educational expenses,” said Molly Macek, education policy director at the Mackinac Center for Public Policy.

Students in Michigan have some of the lowest literacy scores in the nation, she added, noting that the state’s academic performance has deteriorated throughout much of Whitmer’s tenure.

The governor acknowledged in a speech last year that only 24% of fourth graders are proficient in reading and 24% of eighth graders are proficient in math.

Only six states fared worse than Michigan on the National Assessment of Educational Progress in 2024.

Whitmer did not respond to a request for comment.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.