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Democratic governors who have traditionally opposed school choice initiatives will face mounting competitive pressure to join President Donald Trump’s landmark Federal Scholarship Tax Credit (FSTC) program now that key states like New York and Colorado have signed on, a top Department of Education official told Fox News Digital.
“I think that pressure is real and is going to encourage all 50 states to ultimately opt in,” said Lindsey Burke, deputy chief of staff for policy and programs at the U.S. Department of Education.
Burke’s comments follow the Department of the Treasury and the Internal Revenue Service issuing proposed regulations to implement the new federal program, paving the way for America’s first nationwide school choice framework.
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The Department of Education’s deputy chief of staff told Fox News Digital that Democratic governors whose party typically opposed school choice would feel pressure to opt-into President Donald Trump’s Federal Scholarship Tax Credit program after New York and Colorado joined. (Getty Images)
The initiative—also referred to as the Education Freedom Tax Credit—allows individual taxpayers to receive up to a $1,700 dollar-for-dollar federal tax credit for donations made to non-profit scholarship-granting organizations (SGOs). However, state governors must formally opt into the program for their residents and local educational organizations to participate and receive the funds.
The IRS recently reported that more than half of U.S. states have already signed up to participate. Burke noted that “competitive pressure” will ultimately force blue states to capture the influx of private donations.
“If you’re in California, for example… a donor will be able to donate to scholarship-granting organizations outside of California, and they will get their tax credit as a result of that,” Burke said. “So, unless a state like California decides to opt in, then they’re going to have donors donating outside of their state and their students in California not benefiting.”
Education Secretary Linda McMahon previously noted that some Democratic leaders have resisted the federal scholarship program simply because “it’s a Trump measure.”
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McMahon pointed to Kentucky Gov. Andy Beshear, who expressed hesitancy over concerns that school choice programs divert resources away from public education—funding that unions argue should instead go toward boosting teacher salaries, recruiting staff, and upgrading facilities.
Unlike traditional voucher programs that draw directly from municipal or state public education funds, tax-credit scholarships allow taxpayers to redirect a portion of their federal tax liability toward non-profit funding for student scholarships. The federal framework leaves the opt-in decision to state governors, enabling local families to access federally incentivized scholarship dollars.
Sydney Altfield, CEO of Teach Coalition, told Fox News Digital that the structural design of the tax credit creates a financial incentive that blue-state governors cannot afford to ignore.
“This is pressure of money flowing into your state. This is pressure of job availability in your state. This is the pressure of educational opportunities increasing for your communities,” Altfield said, expanding on Burke’s comments. “This is pressure of putting money back in the pockets of parents, back in the pockets of families who are struggling the most. This is the best kind of pressure to have.”
“I think even just today there might have been a news article where Governor Jared Polis from Colorado is calling on blue states not to opt in so that he can take their money,” Altfield added. “That’s a great opportunity for states like Colorado, and hopefully Governor Hochul is right behind him. If other blue states don’t want to opt in, I can only imagine that Governor Hochul is going to do everything in her power to get more money into the state. She always says she wants to put money back into the pockets of New Yorkers, and this is doing just that.”
Colorado Gov. Jared Polis became the first Democratic governor to opt his state into the federal program in January 2026. Dismissing critics at the time, Polis told local media he “would be crazy not to” join, pointing out that the credits empower parents to afford tutoring, after-school care, or summer enrichment programs previously out of reach.
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Kathy Hochul, governor of New York, speaks during a news conference at the WIN NYC family shelter in New York, US, on Thursday, March 5, 2026. (Adam Gray/Bloomberg via Getty Images)
In May, Emma Wallner, a spokesperson for New York Gov. Kathy Hochul, confirmed that the governor intends to opt New York into the program—making it the 30th state to participate.
“Governor Hochul is supportive of the federal tax credit scholarship and its potential to help New York students and schools,” Wallner told Fox News Digital.”Our office awaits information from the federal government on the program and will thoroughly review the details of the policy for poison pills that could harm New York’s education system.”
Despite Hochul’s announcement, major labor groups and teachers unions remain staunchly opposed. A coalition of labor organizations launched a petition demanding state leaders reject the opt-in decision.
“Gov. Hochul plans to opt New York in starting in 2027. But most New Yorkers haven’t even heard of this program or know how it will affect New York,” the petition states.”Tax dollars would help pay private tuition for families who never used public schools.”
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Colorado Gov. Jared Polis speaks to the National Governors Association at the Broadmoor Hotel in Colorado Springs, Colo., July 25, 2025. (AP)
For decades, school choice initiatives have remained a third-rail issue for many Democrats, who contend that choice models weaken public school systems and undermine labor unions. However, growing parent demand for alternative education options—including charter schools, private schooling, and homeschooling following the COVID-19 pandemic—has pushed several prominent Democrats to re-evaluate their positions.
Trump’s landmark school choice program comes amid major big blue city school districts struggling to retain students since the coronavirus pandemic.
Secretary McMahon emphasized that the federal tax credit scholarship aims to give families immediate options.
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“This is money from the private sector added into the education pot,” McMahon said during an appearance on The Faulkner Focus. “Those scholarship-granting organizations which are approved by the governor in the state can then award scholarships to parents who want to move their child out of a failing school, or have private tutors, or if they have kids with special needs—they can supplement that all at no cost to taxpayers whatsoever.”