New Federal Rules Give Colorado Time to Reconsider Voucher Program

Advocates for Public Education Policy (A4PEP) is urging Gov. Jared Polis to reconsider his decision to allow Colorado to participate in the new federal scholarship tax credit program following the U.S. Treasury Department’s release of new regulations on October 1.

The regulations stipulate that a state’s opt-in process is not complete until Scholarship Granting Organizations (SGOs) are submitted to the federal government. Colorado has not yet submitted that information, leaving an opportunity for the state to reconsider its participation.

A4PEP joins with dozens of groups calling for states not to opt in to the new federal school voucher program, as well as more than 170 state and national civil rights, disability rights, education policy, and religious freedom organizations calling on Congress to repeal the federal voucher program.

Colorado should carefully consider the implications of participating in a federal program that directs resources toward private and religious education while limiting the state’s ability to establish additional safeguards.”
Advocates for Public Education Policy

Last spring, Colorado legislators proposed legislation to provide guardrails on how the SGOs would distribute money to families and ensure that students’ rights would be protected.

However, legislators postponed their bill pending the release of the Treasury Department’s regulations. The proposed regulations provide additional information about how the program will operate and are cause for concern in several areas.

The National Coalition for Public Education published a fact sheet outlining some of these concerns:

States will have limited authority to impose additional requirements on The regulations prohibit states from establishing operating requirements that are more restrictive than those authorized by federal law, limiting the ability of states to impose additional safeguards
The program is structured to provide financial support for private and religious schools, with limited public accountability.
States cannot require that the funds be used exclusively for public schools and students. Participation therefore allows federal tax-credit-supported funds to flow primarily to private schools.
The regulations do not address concerns about accountability for public resources, including safeguards against waste, fraud and abuse.
Treasury has not released its guidance regarding what expenses will be eligible under the This means there is no way to know which, if any, public-school expenses or fees will be covered.

Tax credits also reduce federal tax revenue that otherwise would be collected by the federal government. A4PEP believes Coloradans deserve transparency about the program’s fiscal implications and a meaningful opportunity to consider how participation could affect public education.

“Public education works best when resources are invested transparently and equitably in schools that are accountable to the communities they serve,” A4PEP said. “Colorado should carefully consider the implications of participating in a federal program that directs resources toward private and religious education while limiting the state’s ability to establish additional safeguards.”

The people of Colorado have a history of opposition to school vouchers. Colorado voters rejected voucher proposals at the ballot box in 1992, 199,8 and 2024. In June, Phil Weiser won the Democratic primary for governor. Weiser has stated that, if elected, he would not opt Colorado into the federal program.

A4PEP is calling on Gov. Polis to reconsider Colorado’s participation and to ensure that the state’s final decision reflects the interests of Colorado’s public-school students, families and taxpayers.

Advocates for Public Education Policy (A4PEP) is a statewide coalition of individuals and grassroots organizations working to educate the public and policymakers and advocate for public schools that serve all Colorado students.