Faith Leaders Urge Newsom to Join Federal School Choice Program
A coalition warns California could forfeit billions in potential educational funding if the state does not opt into a new tax credit program by January 1.
A coalition of over 100 California faith and school leaders is urging Gov. Gavin Newsom to sign the state onto President Trump's school choice tax credit program before the December 31 deadline. In an Oct. 23 letter, the group, which includes representatives from Catholic schools and Orthodox Jewish organizations, warned that California could lose access to significant educational funding if it opts out.
"California dollars should remain in California to help California students," the letter states. "Governor Newsom, we are simply asking California to participate."
The Federal Scholarship Tax Credit, established as part of Trump's 2025 tax law, allows individual taxpayers to claim a federal income tax credit for donations to eligible scholarship-granting organizations. These scholarships can be used for a range of educational expenses, including private school tuition, tutoring, after-school programs, and services for students with special needs. Individual donors can claim up to $1,700, and married couples filing jointly can claim up to $3,400.
States must opt into the program for their students to be eligible for these scholarships. Donors in non-participating states can still claim the credit by contributing to scholarship organizations in states that have joined the program.
Newsom's office stated that they are "reviewing the materials release and don't have anything to share at this time." The governor, who is set to leave office in January, has not yet announced a decision.
U.S. Secretary of Education Linda McMahon encouraged governors to participate, emphasizing that the program channels private sector funds into education. "This is not taxpayer dollars. It is private sector money coming into these scholarship granting organizations," she told The Post. "I would just urge governors to opt in."
Sydney Altfield, CEO of Teach Coalition and a co-chair of the coalition, indicated that there has been some communication with the governor's office but no definitive stance has been communicated regarding his decision.
Newsom joined other Democratic governors, including those from Connecticut, Massachusetts, Michigan, and New Jersey, in a letter to Treasury Secretary Scott Bessent on Oct. 22. This letter sought further clarification on the program's costs, its potential benefits for public school students, and mechanisms to ensure aid reaches lower-income students.
California could potentially see up to $6.2 billion annually if 30% of eligible taxpayers participate, according to an estimate by Education Reform Now. This figure is based on analysis of similar programs.
New York Gov. Kathy Hochul announced on Oct. 9 that her state would participate, stating that all students should be eligible to benefit and that the state would not forgo available funds.
Critics of the program, such as the Brookings Institution, suggest it could divert federal funds to private and religious schools and disproportionately benefit wealthier communities. However, Altfield countered that public school students would be the primary beneficiaries, using the funds for essential services like after-school care and tutoring, which would assist working families.
