At the beginning of this year, Governor Tony Evers designated 2025 as the “Year of the Kid.” President Trump’s recently passed “One Big Beautiful Bill Act” provides Evers with an unprecedented opportunity to make good on his promise to promote the well-being of kids in Wisconsin well into the future. This newly passed federal budget bill creates an innovative opportunity for kids all across America to receive tailored educational resources by creating the first ever federal K-12 tax credit scholarship program.
Effective January 1, 2027, individuals will receive a 100% federal tax credit for donations to qualified scholarship granting organizations (SGOs) that award K-12 scholarships for tuition and other eligible education expenses. The maximum tax credit that an individual may receive is $1,700, but the bill places no limit on how many people can take advantage of this tax credit. In other words, the program uses private donations to provide educational resources for students.
But the program contains one key catch: each year, states must choose to opt into the program. In order for Wisconsin to participate right away, Governor Evers must submit a notice to the U.S. Treasury along with an annual list of qualified SGOs.
Why Wisconsin Should Opt In
Opting in provides several clear advantages for students in Wisconsin. Governor Evers should consider these advantages carefully.
- No Cost to the State: Rather than utilizing state funds, this program runs on private charitable donations. And because the tax credits are awarded by the federal government, the program will have no impact to the state budget.
- Flexible Use of Funds: The program is structured to meet a variety of educational needs that can be tailored to the needs of each family and each student. Qualifying SGOs can choose to design their scholarships to support public, charter, choice, private, or homeschool students.
- The Wisconsin Institute for Law & Liberty explains, “For example, an SGO might serve low-income or special needs students, providing funds for therapies, tutoring, or specialized services that may not be covered by public school funding. Other SGOs might concentrate on STEM or literacy programs designed to enhance educational opportunities in those areas by providing support for after-school programs, summer learning camps, or targeted interventions for struggling readers. In rural communities and regions where transportation poses a barrier to open enrollment, an SGO could allocate scholarships to help families cover transportation costs for open enrollment or charter schools. Some SGOs might also work to bridge the digital divide by covering the cost of internet service or providing basic devices to students in communities where such resources are limited.”[1]
- Expanded Access for Families: This program also extends its reach to many more families than current school choice options. While Wisconsin’s school choice program limits opportunities to families whose income falls within 300% of the Federal Poverty Limit in Milwaukee and Racine and 220% for the rest of the state, the tax-credit program opens its access to families within 300% of Area Median Income. The Area Median Income is typically significantly higher than the Federal Poverty Level, meaning more students than ever before can benefit from school choice options.
- Keeping resident donations in-state: If Governor Evers chooses not to opt in, donors in Wisconsin can still donate to out-of-state SGOs to receive the tax credit. Children in Wisconsin deserve the opportunities provided by this program. If Governor Evers does not choose to opt in, it is likely that Wisconsin students will miss out on tens of millions of dollars in assistance for educational resources like tuition, books, tutoring, special needs services, transportation, technology equipment, and other supplies.
- The Invest in Education Coalition explains, “For example, if 10,000 donors maximize their allowable donations to an out-of-state SGO that would mean $17 million would fund scholarships for children in other states attending public, private or religious schools”
Take Action
The federal tax credit scholarship program provides valuable advantages for students in Wisconsin. Wisconsinites need to call on Governor Evers to uphold his promise to make 2025 the “Year of the Kid” by opting in to this program.
If you would like to tell Governor Evers that you support opting in, you may do so by calling 608-266-1212, emailing at EversInfo@wisconsin.gov, or filling out this contact form.
The work of Wisconsin Family Action is possible because of generous friends who partner with us financially and in prayer. If you value the work WFA does, we invite you to invest in this unique work that is all about you, your family, your faith, your freedom, and your future! As always, we welcome and covet your prayers.
