In January 2027, the federal government will launch a new voucher program. It’s available to states if the Governor opted to participate. The program was part of what Trump called his “One Big Beautiful Bill,” but which critics called “One Big Ugly Bill,” because it locked in big tax cuts for the wealthiest while cutting benefits for middle-class and poor Americans.

At the recent conference of the Network for Public Education, our board met to discuss whether we would support resistance or collaboration. Although we understand that some schools want to capture any money they can to support their students, we decided to stand strongly for the principle: PUBLIC DOLLARS FOR PUBLIC SCHOOLS. AND ONLY PUBLIC SCHOOLS. we concluded that if public schools accept vouchers, it will normalize the ideas embedded in the program, that is, that education is a consumer good. We believe it is a civic responsibility.

Leigh Dingerson’s description of this new program was published by In the Public Interest, which reports about the privatization of everything.

Public schools may participate in the program, but only for programs and activities that they do not already provide, like after-school tutoring, transportation, and field trips.

Leigh Dingerson wrote:

The idea that government has an inherent interest in providing a free, public education for every child used to be sacrosanct, except among a small set of radical reformers like Milton Friedman. But a 40-year campaign for “school choice” has quietly gathered steam. Proponents of privatization are now openly acknowledging that their sights are set on eliminating public schools. They want to eliminate the U.S. Department of Education (founded to ensure the civil rights of children in schools) and offer no-strings-attached public dollars to private and religious schools. And now, a lawsuit filed in Nebraska just this month argues that the U.S. system of public schools violates the First Amendment and asks the state to declare public schools unconstitutional.

The first nationwide, federally funded school voucher program is set to begin in January, but it has already become a political football in both red and blue states. Governors are being pressured to allow vouchers to be handed out in their states, and deep-pocketed special interests like the Heritage Foundation and large faith-based networks are spending tens of millions of dollars to build the infrastructure to funnel federal funds into private and religious schools.

There is much we don’t yet know about the program, including the mechanism to collect and dole out the money via Scholarship Granting Organizations (SGOs). Regulations are being developed by the Department of the Treasury and are expected within weeks. But we do know this: States are not obligated to participate in this program. In fact, governors or other designated agencies must decide annually whether to allow federally funded vouchers to be handed out in their states.  

What Can Be Done?

The implications of almost-universal private school vouchers are enormous. The federal tax credit voucher program signals a massive shift towards a privatized, market-based system with few if any guardrails to serve our most vulnerable students, ensure equity, rein in discrimination, or address educational quality.

What can state advocates and policymakers do?

Encourage your governor to opt out of the program.

• The governors of Wisconsin, Minnesota, and Oregon have publicly announced their intention to decline to participate in the voucher program. Remember that the decision to participate or opt out of participation in the program must be made Governors may simply wait a year to see how the program plays out.

Consider legislation to narrow or guide your state’s participation.

• Vermont has enacted a law that establishes criteria under which the state will participate in the program. It includes that SGOs have a “core mission of providing educational opportunities to economically underprivileged students” and that neither the SGO nor any school that receives funding under the program may “discriminate against any student” in a variety of categories. It also requires each SGO to report annually to the House and Senate Committees on Education, including data on the use of the voucher funds and the individuals receiving them.
• In Rhode Island, the legislature has passed legislation which requires that both the legislature and the governor must jointly approve any decision to opt in to the program.

Watch for efforts to commit state funding to corporate entities vying to help administer the program.

• A number of corporate entities have been created to “facilitate” and profit from the implementation of this program. For example, in Florida the legislature recently earmarked $2 million in its budget, apparently to contract with LearningSpring, a Denver-based start-up affiliated with the Koch network, to offer an online platform to help administer the federal voucher program.

Understand where your state might have authority to protect public education and ensure the integrity of taxpayer spending in the private market.

• Familiarize yourself with your state’s private school (and homeschool) regulations and consider legislative language to strengthen them, and understand any state requirements for registered nonprofit organizations and whether they place any restrictions on, or allow oversight of, Scholarship Granting Organizations.

 What’s the matter with vouchers? The research is clear.

School vouchers are not new. We have half-a-century of experience with vouchers. Education Law Center’s Public Funds for Public Schools Project documents the many additional and important down-sides to vouchers. Among them:

• Vouchers Increase Segregation. Vouchers originated in southern states to allow white families to avoid sending their children to integrated schools. Racial disparities continue to characterize voucher programs as white families are significantly more likely to use them than families  of color.
• Private Schools Discriminate. Private schools pick and choose their students, by academic record, religion or adherence to a specific set of beliefs, or through tuition and fees that not all families can afford. Research confirms that private schools enroll fewer students with disabilities. Many faith-based schools refuse admission to LGBTQ students, or even students with gay parents.
• Voucher Programs Start Small. They Don’t Stay Small. Voucher programs often start with spending caps or eligibility requirements. But inevitably, costs explode. In state after state, voucher costs have risen The same will be true with the federal voucher program.
• Vouchers Hurt Academic Outcomes. Vouchers do NOT improve student academic outcomes. Children who leave public schools to attend a private school with a tuition subsidy (voucher) do not improve their academic outcomes. In some states the learning loss for public school kids who take a voucher is more substantial than learning loss documented from Hurricane Katrina in New Orleans, or from the Covid epidemic.
• Voucher Schools are Often Both Unaccredited and of Poor Quality. While many imagine that vouchers give children access to an elite private education, most voucher schools are not those schools. Only seven states require private schools to even be accredited. Some voucher schools seem to exist solely to take advantage of the public trough. Michigan State University Professor Josh Cowan calls these “pop-up” schools, and notes that most of these appear to close within four years of opening. Many of these schools fly under the radar of state regulators and some may even be unsafe for children.

 As students return to schools this fall, some have noted that this may be “the last normal year” for American schools.  It’s important for advocates of public education to make sure this critical institution doesn’t crumble.

Leigh Dingerson
Senior Research Fellow

Additional Resources

The following organizations offer additional resources on vouchers and the federal voucher program:

Education Law Center
Public Funds for Public Schools project.
The National Coalition for Public Education
The Network for Public Education