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# Reykdal opposes federal tax credit program, urges gov to reject
- URL: https://justabouts.com/reykdal-opposes-federal-tax-credit-program-urges-gov-to-reject/
- Published: 2026-10-25T04:33:56.000Z
- Updated: 2026-10-25T04:33:56.000Z
- Description: Reykdal opposes the federal scholarship tax credit. An Oct. 24 update explains the IRS participation list, eligibility rules and advocates’ funding estimate.
- Author: Justabouts
- Tags: Schools, #source-washington-state-standard

*This is an abridged republication of an Oct. 13 Washington State Standard report. The separately labeled Justabouts update below adds information from official records checked on Oct. 24.*

by Aspen Ford, [Washington State Standard](https://washingtonstatestandard.com/?ref=justabouts.com)  
October 13, 2026

The leader of Washington state public schools says the state should not join a federal tax credit program that would fund K-12 education. 

Superintendent of Public Instruction Chris Reykdal views the tax credit as a way to expand school choice options without closing funding gaps for public schools. 

Under the program, beginning in January, individuals can claim a dollar-for-dollar federal tax credit of up to $1,700 for donations to certain nonprofits called scholarship-granting organizations. For married couples, credits can be up to $3,400\. 

The scholarships could reach a wide range of students with varying socioeconomic backgrounds. Eligible students are those whose household income is not greater than 300% of an area’s median income. 

## Justabouts update: Oct. 24

Reykdal reiterated his opposition in an [Oct. 21 video from the Office of Superintendent of Public Instruction](https://ospi.k12.wa.us/about-ospi/news-center/videos/state-superintendent-chris-reykdal-describes-federal-education-freedom-tax-credit?ref=justabouts.com), urging Gov. Bob Ferguson to keep Washington out of the program.

The IRS calls it the [Federal Scholarship Tax Credit](https://www.irs.gov/government-entities/federal-state-local-governments/federal-scholarship-tax-credit-fstc?ref=justabouts.com). It begins Jan. 1, 2027, and is nonrefundable. The credit usable in a given tax year is limited by federal income-tax liability; unused eligible credit can carry forward for up to five succeeding tax years. The $3,400 maximum for a married couple filing jointly requires qualifying contributions by each spouse, up to $1,700 apiece.

The IRS’s [list of advance elections to participate](https://www.irs.gov/government-entities/federal-state-local-governments/federal-scholarship-tax-credit-fstc-participating-states?ref=justabouts.com) contained 30 states as of Oct. 22\. Colorado and Virginia were listed; Washington and New York were absent. The list records elections submitted to the IRS. It does not establish whether a governor has made an internal decision or announced an intention to join.

The [law, in section 70411](https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm?ref=justabouts.com), bases student eligibility on the household’s income in the calendar year before the scholarship application, capped at 300% of area median gross income. Students must be eligible to enroll in a public elementary or secondary school. Qualified expenses include tutoring, books, supplies and certain services for students with special needs, so the program can also serve public-school students.

Supporters point to substantial potential funding. Democrats for Education Reform, an advocacy group, [models roughly $1.515 billion for Washington](https://dfer.org/fstc/state-projections/?ref=justabouts.com) if 30% of its selected pool of potential donors contribute enough to use the full credit. That assumption applies to the group it identifies as potential full-credit donors. It is narrower than 30% of all taxpayers, and the estimate depends on participation and other modeling assumptions.

State participation also involves oversight. The governor or an authorized delegate must review and certify scholarship-granting organizations for the IRS list. In [Table 2 of its Oct. 2 rulemaking](https://www.govinfo.gov/content/pkg/FR-2026-10-02/html/2026-20264.htm?ref=justabouts.com), Treasury estimated 10 hours of paperwork per response for the state’s compilation and submission of its list and certifications. That is an estimated reporting burden. It does not set a minimum number of work hours per organization or establish the state’s full administrative cost.

*Additional links from the original report:* [*earlier coverage of Washington’s participation debate*](https://washingtonstatestandard.com/2026/09/16/will-a-new-federal-education-tax-credit-be-available-in-washington/?ref=justabouts.com)*;* [*coverage of federal program guidance*](https://washingtonstatestandard.com/2026/10/01/repub/feds-provide-guidance-on-new-federal-k-12-scholarship-tax-credit-program/?ref=justabouts.com)*;* [*Washington Student Success Coalition*](https://wastudentsuccess.org/?ref=justabouts.com)*;* [*Democrats for Education Reform*](https://dfer.org/about/?ref=justabouts.com)*;* [*the Seattle Times opinion column cited in the original report*](https://www.seattletimes.com/opinion/wa-must-return-to-its-paramount-duty-k-12-education/?ref=justabouts.com)*.*

[Washington State Standard](https://washingtonstatestandard.com/?ref=justabouts.com) is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Washington State Standard maintains editorial independence. Contact Editor for questions: [info@washingtonstatestandard.com](mailto:info@washingtonstatestandard.com).

*Originally published by* [*Washington State Standard*](https://washingtonstatestandard.com/2026/10/13/reykdal-opposes-federal-tax-credit-program-urges-gov-to-reject/?ref=justabouts.com) *on Oct. 13, 2026\. Republished under* [*CC BY-NC-ND 4.0*](https://creativecommons.org/licenses/by-nc-nd/4.0/?ref=justabouts.com) *and the publisher’s* [*republishing guidelines*](https://washingtonstatestandard.com/republishing-guidelines/?ref=justabouts.com)*. Shortened by Justabouts, with minor house-style changes. The introduction and the section labeled “Justabouts update” were added by Justabouts.*