This post originally appeared at https://wifamilycouncil.org/radio/will-evers-or-wont-evers/
2025 | Week of August 25 | Radio Transcript #1633
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” quite possibly 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.
As we talk about this today, it’s important to remember that the actual details on this program are not yet available, which means how this opportunity actually works and who will benefit from it, is not yet totally clear. That said, what we know right now is that effective January 1, 2027, individuals are scheduled to receive a 100% federal tax credit for donations to qualified scholarship granting organizations (or 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 is designed to use 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, Governor Evers must submit a notice to the U.S. Treasury along with an annual list of qualified SGOs
Opting in, based on what we know at this point, would provide several advantages for Wisconsin students. Governor Evers should consider these advantages carefully.
First, the program runs at 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 on the state budget.
Second, the program facilitates a flexible use of funds. The program is ostensibly structured to meet a variety of educational needs that can be tailored to the needs of each family and each student. It’s quite possible that qualifying SGOs can choose to design their scholarships to support public, charter, choice, private, or homeschool students.
Wisconsin Institute for Law & Liberty explains, “For example, an SGO might serve low-income or special needs students…. Other SGOs might concentrate on STEM or literacy programs…. In rural communities…where transportation poses a barrier to open enrollment, an SGO could allocate scholarships to help families cover transportation…. 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]
Third, the program creates 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.
Fourth, opting in to the program will keep 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.
For example, if 10,000 Wisconsin citizens give the limit to an out-of-state SGO, that would mean $17 million would go to scholarships in other states where the governor has opted in, rather than helping students in our own state with education resources such as tuition, books, tutoring, special-needs services, transportation, technology equipment, basic supplies and more.
The federal tax credit scholarship program appears to provide valuable advantages for students in Wisconsin. Once the details are available and clearly understood, Governor Evers would be wise to uphold his promise to make 2025 the “Year of the Kid” by opting in to this program.
For Wisconsin Family Council, this is Julaine Appling reminding you that God, through the prophet Hosea, said, “My people are destroyed for lack of knowledge.”