The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com.
Earlier this year, the Wisconsin Legislature passed Assembly Bill 602, which would have required Wisconsin to participate in the new Federal Scholarship Tax Credit (FSTC) program. Although the legislation was ultimately vetoed over concerns about expanding private school vouchers, Wisconsin still has options. Under federal law, the executive branch already has the authority to opt our state into the program without additional legislative action.
On October 1, the U.S. Treasury Department and Internal Revenue Service released final regulations for the new federal tax credit program under Section 25F. Beginning January 1, 2027, taxpayers can receive a dollar-for-dollar federal tax credit for voluntary contributions to qualified scholarship-granting organizations that help students pay for educational expenses.
The federal credit allows individual filers to redirect up to $1,700 annually, while married couples filing jointly can redirect up to $3,400.
One important fact has been largely overlooked in the debate surrounding this program: These scholarships are not exclusively for private school students. Public school students can benefit, too.
Under the federal program, scholarships can help families pay for reading and math tutoring, educational materials, instructional technology, and certain specialized services for children with disabilities. A student attending a traditional public school in Germantown, Menomonee Falls or Hamilton could remain enrolled in that school while receiving scholarship assistance for additional educational support.
Treasury estimates that approximately 96 percent of K–12 students nationwide could meet the program’s income eligibility requirements. That represents an opportunity to help Wisconsin families access additional educational resources for their children, regardless of where they attend school.
Crucially, this federal assistance comes at zero cost to state public education. Participating in the FSTC does not reduce Wisconsin’s state aid to public schools by a single dollar. It does not change our school funding formula, redirect state education appropriations, or require Wisconsin to fund a new state scholarship program. Instead, the federal government offers tax credits to individuals who voluntarily contribute to qualified nonprofit scholarship granting organizations (SGOs).
There are legitimate discussions to be had about federal tax policy and educational accountability. But the suggestion that Wisconsin must choose between supporting public schools and allowing families to access these scholarships presents a false choice.
Consider a public school student who is struggling with reading but whose family cannot afford additional tutoring. Or a child with a disability who could benefit from specialized educational services beyond those already provided by the school. These scholarships could help families access that support without requiring the student to leave their neighborhood public school. That is not taking an opportunity away from public education. It is providing another opportunity for a public school student to succeed.
There is also a practical financial consequence to Wisconsin’s refusal to participate. Thirty states have already elected to participate in the program. The credit is federal, so eligible Wisconsin taxpayers may still receive it by donating to qualified scholarship granting organizations in participating states. In other words, Wisconsin residents could help finance scholarships for students in other states while Wisconsin children remain unable to benefit from scholarships awarded through this program. Why should a taxpayer in Wisconsin be able to support a student’s tutoring or educational expenses in another state, but not provide that same assistance to a student in Germantown, Butler, Lannon, or Menomonee Falls?
This should not be a partisan argument over whether public or private education is better. Wisconsin families choose different educational paths for different reasons, and our responsibility as elected officials should be to help students succeed, not deny them opportunities based on where they attend school.
I supported Assembly Bill 602 because I believe Wisconsin students deserve access to the same educational opportunities available to children in other states. But we do not need another bill from the Legislature to make that possible. Federal law already gives the executive branch the authority to act.
The Federal Scholarship Tax Credit will move forward whether Wisconsin acts or not. Refusing to establish a state framework does nothing to increase funding for our public schools. It simply prevents local families from accessing a new source of educational support.
Our students deserve every opportunity to succeed. Governor Evers should reconsider his decision and opt Wisconsin into this federal program so our families can access these resources.
Knodl, R-Germantown, represents the 24th Assembly District.
