Chris Frésquez

Posted on February 5, 2026

 

Buried deep inside H.R. 1, the Federal Budget Reconciliation Bill, is a provision with sweeping consequences for public education—one that did not pass through public debate, voter approval, or a statewide referendum. It is called the Federal Tax Credit Scholarship Program. And despite its name and marketing, this is not a modest education initiative for low-income families. It is a federal tax forgiveness scheme for wealthy taxpayers that opens the door to a nationwide voucher system redirecting public resources to private and religious schools.

 

This is no longer a proposal. It is federal law.

 

Voters here have repeatedly rejected school voucher programs at the ballot box. Yet under this new federal structure, the choice is no longer in the hands of voters.

 

What remains undecided—and critically important—is whether individual states will activate it.

 

A Decision Removed From Voters

 

Implementation of this voucher scheme is not automatic. Each Governor must opt their state in by submitting a list of approved Scholarship Granting Organizations (SGOs) to the U.S. Treasury. These SGOs would then serve as the pass-through entities for tax-credited donations that fund private-school “scholarships.”

 

In Colorado, this matters profoundly. Voters here have repeatedly rejected school voucher programs at the ballot box. Yet under this new federal structure, the choice is no longer in the hands of voters.

 

Participation in the Federal Tax Credit Scholarship Program created by H.R. 1 rests on an affirmative state opt-in, a decision currently carried out in Colorado, through the Governor’s office.

That is the moment we are at right now.

 

What School Vouchers Actually Do

 

School vouchers divert public education dollars away from neighborhood public schools and reroute them to subsidize tuition at private and religious institutions. This redirection is often obscured by language about “choice” and “scholarships,” but the outcome is consistent: fewer resources for public schools that serve the vast majority of students.

 

Under this new federal law, scheduled to begin in January 2027, billions of taxpayer dollars are expected to be transferred nationwide.

 

It is also worth stating plainly: no taxpayer-funded voucher program in the United States has ever been approved directly by voters. Everyone has been enacted legislatively, typically under intense pressure from well-funded lobbying organizations that understand vouchers cannot survive a popular vote.

 

Who Really Benefits

 

The mechanics of the Federal Tax Credit Scholarship Program make its priorities clear. Taxpayers can reduce their federal tax bill by up to $1,700 by donating to an approved SGO. Unlike standard charitable deductions—which usually return about 30 cents on the dollar, this program offers a 100% dollar-for-dollar federal tax credit. From a purely financial standpoint, it is a windfall.

 

Because of that structure, tax advisors are expected to recommend these donations to wealthy clients regardless of their views on education policy. SGOs, in turn, are allowed to retain up to 10% of the funds for administrative costs before scholarships are even distributed.

 

This is not generosity. It is a tax shelter.

 

Who Qualifies—and What That Reveals

 

Supporters often claim the program is designed for low-income students. The eligibility rules tell a different story.

 

• Students qualify if their family income is up to 300% of the area median income. In some high-income counties, that threshold can approach $500,000 for a family of four. Priority is given to students who have already received scholarships and to their siblings, creating long-term financial obligations that grow year after year.

What remains unclear—and deeply concerning—is whether states will be expected to cover funding gaps if donations decline while scholarship commitments continue to expand.

 

Why This Matters

Public education thrives when resources are invested equitably, transparently, and locally. It weakens when funding is siphoned through federal tax shelters that primarily benefit the wealthy while undermining the schools that serve entire communities.

 

Unfortunately, on January 29, in a private setting with pro-voucher advocates and religious and private school supporters, Governor Polis announced that he had opted Colorado into the controversial federal voucher program. This decision was made quietly, without public hearing, and without voter input.

 

Just days earlier, fifteen pro–public education organizations had formally signed onto a letter urging the Governor to reject the program and to honor the clear will of Colorado voters, who have repeatedly opposed school vouchers. Their concerns were not acknowledged. Their pleas fell on deaf ears. Once again, the will of the people was bypassed.

 

Even more troubling, the Trump administration has yet to establish any rules, guidelines, or regulatory framework for how this voucher program will operate. Fundamental questions remain unanswered. Will states be given broad discretion to implement the program? Will public schools be allowed to receive voucher funds—or are they categorically excluded? And perhaps most critically, does this program violate Colorado’s Constitution, which explicitly states that no public funds should be used to support private schools?

 

These questions are not academic. They strike at the core of constitutional governance, public accountability, and the future of public education in Colorado.

 

Stay tuned for updates. In the meantime, share this with your neighbors, friends, principals, superintendents—and with everyone who cares about the future of public education.

 

Chris M. Frésquez, Publisher, The Weekly Issue El Semanario.