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
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, urging Gov. Bob Ferguson to keep Washington out of the program.
The IRS calls it the Federal Scholarship Tax Credit. 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 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, 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 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, 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; coverage of federal program guidance; Washington Student Success Coalition; Democrats for Education Reform; the Seattle Times opinion column cited in the original report.
Washington State Standard 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.
Originally published by Washington State Standard on Oct. 13, 2026. Republished under CC BY-NC-ND 4.0 and the publisher’s republishing guidelines. Shortened by Justabouts, with minor house-style changes. The introduction and the section labeled “Justabouts update” were added by Justabouts.
