Texas Governor Greg Abbott waged a multimillion dollar campaign to defeat moderate Republicans in the Hogse of Representatives so he could finally get the legislature to pass his voucher bill. He wanted to subsidize private Christian schools and was shocked when Islamic schools wanted their students to get vouchers.
Abbott falsely claimed that public schools were “indoctrinating” students, and he wanted the state to pay for students to go to religious schools, whose explicit purpose is indoctrination.
As usual, the overwhelming majority of voucher applicants had never attended a public school. Most were already enrolled in a religious or private school or were none-schooled.
What would’ve been school-choice proponents’ triumphant publicity tour after the application period closed on Texas’ shiny new voucher program, in mid-March, was instead consumed by catty finger-pointing between two top state officials over who’s to blame for the state seemingly botching its attempt to religiously discriminate against some program participants.
It’s the sort of comedic tragedy that has become all too common in the red empire of Texas: Pass a harmful new policy while prevaricating as to its actual intent, create a pretext to carry out the policy in a clearly discriminatory fashion, invite a costly lawsuit that will ultimately end with the state being forced to comply, muddy the waters over who’s to blame.
While pushing the private-school voucher bill through the state House and Senate last year, Republican legislative hands repeatedly insisted, when presented with various theoretical scenarios, that this near-universal “Texas Education Freedom Accounts” program would be open to any and all types of private schools—of all creeds and persuasions. Religious freedom was to reign supreme. How dare thee even question the universality of this venerable program, Republican legislators inveighed.
In predictable fashion, the Texas GOP—lately in the throes of another virulent anti-Muslim bender—hasn’t quite lived up to that promise. In the lead-up to the official voucher rollout, acting Texas Comptroller Kelly Hancock—who is currently in charge of administering the program and was, at the time, trying to win a primary election to hold onto his appointed post—used the administrative process to effectively block certain Islamic schools from participating by alleging such potential applicants were affiliated with the Council on American-Islamic Relations (CAIR), a national civil rights group akin to the NAACP or LULAC, and the Egypt-based transnational organization the Muslim Brotherhood, each of which the state has deemed a “foreign terrorist organization.” (The rule also sought to block schools affiliated with the darned Chinese Communist Party.) The conflation of CAIR with the Muslim Brotherhood and Palestine’s Hamas is a theory that’s long brewedin the right’s more feverish swamps. (CAIR is suing the State of Texas over this designation.)
In response, a group of Islamic schools and Muslim families went to court over the discriminatory exclusion from the program: “The exclusion is not based on individualized findings of unlawful conduct by any specific school, but rather on categorical presumptions that Islamic schools are suspect and potentially linked to terrorism by virtue of their religious identity and community associations,” the lawsuit read. A federal judge ordered the state to extend its application deadline to allow for these schools to go through the process.
The comptroller’s office has since said that it has accepted all eligible Islamic schools that applied to participate in the program—including Houston’s Quran Academy—but not before Hancock sent a letter critiquing Attorney General Ken Paxton’s handling of the court case and urging Paxton to strip Quran Academy, which the state unsubstantially claims has links to the Muslim Brotherhood, of its ability to operate in the state. In the letter, Hancock—fresh off being blown out in his primary bid to be the duly elected comptroller by ex-state Senator Don Huffines—effectively accused Paxton of being soft on terrorism. “Texas cannot be asleep at the wheel as radical Islam spreads,” Hancock wrote.
Paxton, in the midst of a heated runoff battle with John Cornyn after coming in second in his own primary bid to ascend to the U.S. Senate, took exception to being scolded by the likes of a RINO such as Hancock (i.e., one of the two GOP senators who voted to convict Paxton in his impeachment proceedings in 2023). The still-AG issued a scorched-earth retort, calling the interim comptroller an incompetent never-Trump hack nursing a deep political grudge—and demanding Hancock be fired. (It’s not clear who, if anyone, would have the authority to fire him.)
Paxton then said his office, whose duties include serving as legal counsel for state agencies, would no longer be defending the comptroller in the federal vouchers lawsuit, claiming Hancock’s letter undermined the state’s case and introduced “incendiary” accusations against Quran Academy that had not been entered into evidence in court.
“Never before have I witnessed such a fundamentally unserious person be both an unbelievable embarrassment to the State and put his own interests above Texans,” Paxton wrote. “It would be easy to disregard Kelly Hancock’s letter as nothing more than hotheaded, politically-motivated behavior from someone desperately clinging to relevancy, but it’s far worse than that: His actions hurt my office’s ability to defend the Comptroller’s office in these critical cases.”
For vouchers, there have been some other PR snags as well. For instance, one religious school—Cypress Christian in the Houston area—that hosted a pro-voucher event during Governor Greg Abbott’s promotional tour last year, has itself opted not to participate in the program.
Per the Houston Chronicle, the school’s leader told parents that the institution is “governed exclusively by biblical doctrine and scripture” and that enrolling in the voucher program would inherently result in “ongoing government entanglement.” Many other high-end private schools—where the annual tuition typically far exceeds the standard $10,000 voucher allotment—in the Houston area have also optedagainst participation.
All the while, Abbott—who claims political ownership of both the school voucher program, having succeeded in ramming it through a humbled Texas House, and Kelly Hancock’s comptrollership, an ally whom he plucked from the state Senate to take over the statewide office and launch of the program—was radio silent. The governor, in late March, spent his allotted time at CPAC in Dallas, while Paxton and Hancock traded potshots, droning on about the urgent need to stop the “Talarico takeover of Texas,” referencing the Democrats’ Senate candidate.
Meanwhile, how does the voucher program—which was sold as a tool to allow low-income families to get their kids out of the state’s failing woke indoctrination facilities, known as public schools, and into predominantly Christian private schools—appear to be sizing up with its mission?
It’s certainly succeeded in getting more applications than the $1 billion that the state has initially appropriated can cover, which is about 90,000 spots. Applications had been submitted for about 275,000 students as of late March. But just 25 percent of those—about 60,000—were for students currently enrolled in public schools, according to state comptroller data. (That, per the Texas Center for Voucher Transparency, amounts to about 1 percent of the state’s 5.5 million public school students.)
To be clear, that means the vast majority of the students who are applying for vouchers are already enrolled in private schools, being homeschooled, or entering school for the first time. There were roughly 2,300 schools enrolled in the program so far—though those schools have full discretion in whether or not to accept a voucher recipient. Many of the enrolled schools are parochial Catholic schools or Christian academies. As the Texas Observer has previously reported, dozens of these enrolled schools have policies that restrict admission based on religion and even sexual identity.
The application period closed on March 31, then the process moved on to the next phase in which the state—through its privately contracted voucher vendor—will determine who receives the limited number of vouchers, based on a convoluted, multistep process accounting for family income and other variables.
By that point, it seems assured, some new brouhaha will be consuming the program.
Yesterday, I posted Peter Greene’s post about the voucher battle in Nebraska. Republicans in the state legislature really want vouchers. Voters really don’t want vouchers. I no as recent referendum, Nebraska voters overturned the state’s voucher program. That shoukd have been the end of the story, but it wasn’t. The Republican Governor and legislature decided to ignore the voters and participate in Trump’s voucher plan.
But then Peter discovered the battle was not over.
As we noted last week, some Nebraska fans of taxpayer-funded vouchers tried–again–to get enact vouchers, this time through the sneaky technique of putting them in the budget. Instead of getting their vouchers, they raised a controversy that sank the entire budget.
State Sen. Rob Clements of Elmwood, Appropriations Committee chair, removed the $3.5 million of voucher money, meant to bridg the gap between the end of the state’s voucher program that was repealed by voters, and the beginning of the federal voucher system that Governor Pillen opted into (the voters get no say on that one). And lots of people were upset, as reported by the Nebraska Examiner.
Arguments for the voucher money were baloney. Sen. Christy Armendariz of Omaha argued that the vouchers were needed to protect poor kids who might be “kicked out” of public school. State Sen. Brad von Gillern of the Elkhorn area expressed frustration toward opponents, calling it hypocritical to oppose the measure when many of the same senators argue the state isn’t doing enough to help the poor.
“Shame on you,” von Gillern said. “If you make a pitch for poor people for any other reason, and you can’t support this, you’re a hypocrite.”
Except that vouchers are used mostly by wealthy, already-in-private-school students, and it’s the private schools that get to pick their students, not vice versa. It is telling that the voucher crowd did not have anecdotes of poor children who had been kicked out of public school and had been rescued by vouchers. The program ran all this year, so those stories, if real, should have been easy enough to locate.
Sen. Myron Dorn of Adams, the only Republican on Appropriations to oppose the $3.5 million in vouchers, criticized focus on this one issue, and also criticized the whole sneaky business of trying to slip this policy into the budget when there is no bill or law behind it.
Said Tim Royers, president of Nebraska State Education Association–
This standoff is exactly why you don’t try and pass policy through the budget, especially when that policy is to extend an incredibly unpopular program that was repealed by voters in the most recent election. … We hope enough can come together and negotiate a path forward that keeps vouchers out of the budget.
So Nebraska voucherphiles managed to sink the state budget over a program that voters had already voted down. That’s a bold stance to take and one can hope that Nebraska voters will deliver the reward they so richly deserve. It’s yet another reminder, in a backhand way, that no matter how hard voucherphiles insist to the contrary, supporting taxpayer-funded school vouchers is not actually a winning political issue.
Peter Greene retired after 39 years of teaching, and now is the best-informed and most prolific writer about misguided and sometimes malicious efforts to “reform” public schools.
Peter has his own blog–Curmudgucation–and also writes a column about reform frauds for FORBES.
In this post, he tells the remarkable and unsavory story of vouchers in Nebraska. Nebraska is a solid red state, but its voters don’t want vouchers. Rural legislators–even Republicans–know it’s a waste of money and are sure to defund their public schools.
But the voucher-pushers keep looking for clever ways to bypass the voters, who have made it clear that they don’t want vouchers.
Peter Greene writes:
Nebraska’s voucher fans are bound and determined, like legislators in many states, to get around the voters so they can get vouchers installed.
In May of 2023, Nebraska’s Governor Jim Pillen signed into law LB 753, creating tax credit vouchers for subsidizing private schools.
The concept has been floated in Nebraska before, notably turning up more than once in 2022’s session. In 2023, it finally progressed through the legislature. But NSEA political action director Brian Nikkelson told the Nebraska Examiner that the public did not support the vouchers, and if the bill was passed, there would be a petition drive to force the bill to go on the ballot for voters to decide.
And so there was. It was a heck of a battle, with the pro-voucher forces have attracting a mountain of money, some of it from outside the state. Paul Hammel at the Nebraska Examiner reported that big money contributors include C.L. Werner, an Omaha-based trucking company executive ($100,000), Tom Peed and his son Shawn of a Lincoln publishing company ($75,000 each), and former Nebraska governor U.S. Senator Pete Ricketts ($25,000). Governor Pillen himself has contributed $100,000 to the campaign to save vouchers from a vote.
At the same time, Hammel reported, the American Federation for Children, the school choice advocacy group founded by Betsy DeVos, has contributed $103,000 in in-kind services and $583,000 in cash to the campaign.
It didn’t matter. Support Our Schools needed 60,000 signatures to force a referendum. They ended up with about twice that number (that’s roughly 10% of all eligible voters in the state). So this November, the voters of Nebraska were supposed to have their say. So you’d expect that voucher fans, who keep telling us how much everyone loves vouchers, would just sit back, secure in the knowledge that their program would win the referendum handily.
Well, no.
Instead, legislators cooked up LB 1402. This bill proposed to repeal the Opportunity Scholarships that were created under LB 753, and then to replace them with a new version of Opportunity Scholarships. This version would have been an education savings account (ESA) style super-voucher that hands over taxpayer money to send a student to a private or parochial school. It was more sketchy than last year’s bill because it appropriates state funds (rather than tax-credited contributions) to pay for the vouchers.
But mostly what it did it render the petition drive moot, because it repealed the version of vouchers that the public was going to vote on. “Ha,” they apparently thought. “That’ll stop those damned voters.”
In 67 days, the coalition of opponents gathered the necessary signatures—again. That repeal passed in November 2024, with 45 out of 49 legislative districts voting to repeal, and Nebraska’s voucher law was toast. The voters had sent a clear and unequivocal message.
Surely the state’s leaders would say, “Well, the voters have spoken, so that’s that.”
Fat chance.
Voucherphiles were back with a new proposal in January 2025. “I’m not dissuaded by the fact that it was defeated at the ballot box,” said freshman State Sen. Tony Sorrentino of Omaha.
Pillen’s new idea is to sell vouchers for the “gap” year, the year between the time when Nebraska’s vouchers are required to end and the time when the federal vouchers are supposed to kick in. The proposal is being sent through the state’s Labor Department rather than the Department of Education because that would skirt the requirement for any sort of hearing or debate, probably because voucherphiles have a pretty good idea of how that would go.
Nebraska is one of those states where rural Republicans have opposed all attempts at vouchers, and they aren’t sounding any friendlier about this one. Zach Wendling at Nebraska Examiner talked to State Sen. Tom Brandt of Plymouth, a Republican who opposed Linehan’s previous proposals; he said he is opposed to using any public money for private school choice. He’s still waiting to see how the federal tax credit program includes public schools (because, remember, there are no actual rules yet attached to the federal voucher program).
“The referendum simply eliminated that. Period, end of story,” he continued on the state policy. “There’s no other interpretation you can draw from that.”
The gap funding would cost about $5 million for around 2,500 students. Of course, with no rules in place, it’s possible that not all of Nebraska’s current voucher students would qualify for federal vouchers. Nor can we predict what slice of the federal money pie Nebraska would be entitled to. If it comes to that, we could expect voucherphiles to argue that more gap funding is needed to cover new gaps, or maybe to expand above and beyond the federal offerings.
Nebraska voucher fans are making a lot of “think of the children” noises, but families have plenty of time to look for new arrangements (i.e. finding the student a new school or going back to paying the full tuition with their own money).
This is the same story we’ve seen over and over again. Vouchers never win when voters have a chance to be heard. Every single taxpayer-funded voucher program in this country has been created without giving the taxpayers a say or ignoring the say they had already said. Taxpayer-funded vouchers are all the result of legislators backed by deep-pocketed voucher fans deciding they are going to inflict these on the taxpayers. Nebraska’s taxpayers just happen to have a few more tools to fight back with, but Nebraska’s voucherphiles just keep looking for a way to avoid that whole pesky democracy thing.
I was delighted to see that the very popular Heather Cox Richardson invited Josh Cowen to talk about the ominous spread of vouchers. HCR made clear that public schools are an essential element in building a society that is educated to sustain democracy.
The voucher movenent, on the other side, has turned into a means of building a society that sustains the white Christian nationalism of its funders.
It’s a valuable discussion, and I hope you will watch and listen.
The Century Foundation published an analysis of Trump’s federal voucher program, which explains why it is a hoax and a fraud. The authors are Kayla Patrick and Loredana Valtierra.
The promise it makes is that families and students will choose schools that are just right for them, but the reality is that schools choose the students they want.
The promise is that school choice will benefit black and brown children, as well as children with disabilities, but children abandon all civil rights protections when they enroll in private schools.
The promise is that schools of choice will produce better academic outcomes but typically they produce worse outcomes (see Josh Cowen, The Privateers).
The promise is that school choice represents accountability but it usually means no accountability at all, because nonpublic schools don’t take national or state tests.
Kayla Patrick and Loredana Valtierra write:
Modern school voucher programs are often framed as a response to declining academic achievement and a way to expand “parent choice” by enabling private educators to operate within the public system. But in practice, vouchers operate quite differently than advertised. It’s the private schools, not families, who ultimately decide who enrolls, and they do so outside the accountability systems that govern public education and public dollars and ensure every student has equal opportunity to learn.
The Federal Tax Credit Scholarship Program (FTCS), passed as part of the Republican Party’s “One Big Beautiful Bill” (OBBBA), scales this model for camouflaged privatization to the national level. Though branded as a tax incentive, it functions as a nationwide voucher system that diverts public dollars to private schools while allowing those schools to play by different rules than public providers—evading civil rights protections, academic oversight, and any requirement to provide meaningful evidence to the public of their students’ outcomes.
A National Voucher Program Disguised as a Tax Credit
The FTCS nationalizes a model that at least twenty states and counting –including Arizona, Georgia, Louisiana, and Pennsylvania – have already adopted, one which functions by siphoning public dollars through scholarship granting organizations (SGOs). Under this law, individual taxpayers can donate up to $1,700 annually to SGOs in exchange for a 100 percent federal tax credit, effectively turning private donations into reimbursed public expenditures.
SGOs then will distribute “scholarships” to K–12 students to use toward private school tuition, books, curriculum materials, tutoring or other educational classes, and educational therapies provided by licensed providers. While the program is optional for states, at least twenty-seven have already signaled their intent to participate.
[To see which states have expressed their intent to participate, open the link.]
Despite its branding, this design drains public revenue that would otherwise support public schools—which still educate roughly 90 percent of American students—and redirects it to private, religious, and largely unregulated providers.
The program model also ignores what parents time and again have told us they want for their children. When given a direct choice at the ballot box, voters have repeatedly rejected school vouchers and related private-school subsidy measures. In the 2024 election, proposals to authorize or expand voucher-style programs in Colorado, Kentucky, and Nebraska were defeated, and historical ballot measure data show that voters have rejected every statewide private voucher or education tax credit initiative placed before them since 1970. This opposition is reflected in polling that shows nearly 70 percent of voters say they would rather increase federal funding for public schools than expand government-funded vouchers, including majorities across party lines.
[Open the link to see which states have held referenda on vouchers.]
Broad Eligibility, Few Quality Controls, and Limited Public Benefit
Even measured against its stated goal of affordability, the FTCS program misses the mark. But if the goal is to make education more affordable for families under real financial strain, this program is also ineffective. Private K–12 tuition averages nearly $13,000 per year nationwide, placing private schooling out of reach for many families even with a modest subsidy. Yet the tax credit is not targeted to families facing affordability pressures. It allows households earning up to 300 percent of area median income to qualify, a threshold that would make roughly 90 percent of U.S. households eligible. In high-income regions, families earning as much as $500,000 per year could receive publicly subsidized support for private education, while in a city like New York—where median income is about $81,000—families earning nearly $244,000 would qualify. At a time when families are struggling to afford groceries, housing, and child care, this program directs public dollars toward a limited use—private education subsidies for households that largely do not need the financial help—rather than toward measures that would help most families, like lowering child care or housing costs.
At a time when families are struggling to afford groceries, housing, and child care, this program directs public dollars toward a limited use—private education subsidies for households that largely do not need the financial help—rather than toward measures that would help most families, like lowering child care or housing costs.
At the same time, the program imposes no meaningful accountability requirements on participating schools. There are no academic performance standards, no transparency obligations, and no requirement to evaluate outcomes. In contrast to nearly every other federal program serving children, from Title I to Head Start, this is public spending without public oversight. Federal programs historically are monitored for fiscal, quality, and sometimes for safety compliance by the agency with charge over the program. In this case, U.S Department of Education (ED) expertise plays no role in oversight of new national policy for education.1
What State Leaders Can and Cannot Control
FTCS offers a tempting hook for well-intentioned state policymakers as well: Some governors and state legislatures may view the tax credit as a way to unlock new resources for priorities like tutoring or after-school programs. In practice, however, it offers no new, flexible funding for states and gives them little control over how public dollars are used. The law defines “scholarship-granting organizations” so broadly that states cannot meaningfully restrict eligibility, set standards, or influence whether funds flow primarily to high-cost private schools rather than unmet public needs.
Once a state opts in, its role is largely administrative and unfunded. States receive no resources to carry out oversight, cannot impose safeguards, and must submit eligible organizations to the U.S. Treasury without authority to shape program design or accountability. Far from being additional education funding that states need, opting in requires that states absorb the fiscal, administrative, and equity consequences of a federal program they are unable to direct or correct. It is not “free money” for states. The opt-in decision is therefore the only meaningful leverage states have—and governors should use their right to refuse to play along in order to protect their public education systems.
Why Oversight and Accountability Matters
Public funding should never function on a good-faith system. It’s very simple: in good policymaking, whenever taxpayer dollars are allocated, oversight measures are put in place to make sure those dollars are spent in the way intended. We already know from numerous examples in the school choice policy space itself that no accountability means that those who need the help the least receive the most benefit.
Eighteen states have a universal private school choice program. Unfortunately, states that have expanded vouchers or education savings accounts with minimal oversight have already seen waste, fraud, and abuse. Arizona’s universal Empowerment Scholarship Account (ESA) program, for instance, has minimal controls, audit practices that automatically approve reimbursements, and has been linked to purchases of non-educational items like diamond rings, televisions, and even lingerie with taxpayer funds, prompting investigations by the state attorney general. Rather than lowering costs for families, the program has generated ballooning expenses for the state and contributed to a growing budget crisis—with no measurable benefit to students at all.
Similarly, the federal Charter Schools Program has repeatedly been shown to lack meaningful accountability, with investigations and audits documenting hundreds of millions of dollars wasted on schools that never opened or closed prematurely, and charter networks facing conservatorship over financial mismanagement and self-dealing. These outcomes are the predictable result of public dollars flowing to private operators without meaningful oversight.
Decades of research on voucher programs show mixed or negative academic outcomes, particularly in math and reading, and no evidence that vouchers close opportunity gaps. In Louisiana, Indiana, and Ohio, studies found declines in student achievement following expansions in voucher programs. Students in Louisiana’s voucher program experienced drops in both math and reading in their first two years, while voucher students in Indiana and Ohio performed worse than comparable peers who remained in public schools.
The program nationalizes an unproven experiment while insulating it from the very safeguards that exist to protect students and taxpayers alike.
Taken together, these examples underscore why oversight and accountability are not optional when public dollars are at stake. The FTCS program includes no meaningful accountability, evaluation, or research requirements to justify an estimated $26 billion cost to taxpayers. Without data on student learning, fiscal integrity, or long-term outcomes, the public has no way to assess whether this investment is helping students or simply reshuffling them across systems while diverting resources away from the public schools that serve most children and toward unknown corporate interests.2 In effect, the program nationalizes an unproven experiment while insulating it from the very safeguards that exist to protect students and taxpayers alike.
Who Profits When Public Dollars Become Private Subsidies?
Another consequence of turning public education dollars into private subsidies is that it creates a lucrative marketplace for the companies that manage these voucher systems. A handful of firms have seized on state voucher expansions to secure multimillion-dollar contracts, turning what was pitched as a cost-saving policy into a business opportunity for tech and finance intermediaries. These companies often have limited experience running education programs, and in some states have faced scrutiny over operational problems, questionable spending controls, and high administrative costs.
This track record raises questions about whether families truly benefit from FTCS’s model. It would seem the opposite: it diverts taxpayer dollars into private profit streams instead of lowering education costs for struggling families. Instead of more wasteful government contracts, these dollars should be used to improve neighborhood schools by hiring high-quality educators, increasing after school programs, expanding pre-K, and hiring mental health professionals.
A Tax Policy Not Designed to Support Education
Congress gave sole interpretive authority for this program to the U.S. Treasury Department, deliberately excluding the U.S. Department of Education and its education-specific expertise. As a result, a major national education policy will be implemented through the tax code, with limited attention to accountability, equity, or educational impact. While advocates have urged the Treasury Department to include stronger transparency, safeguards, and state authority, it is unlikely those measures will be adopted to address the program’s core design flaws.
This use of the tax code stands in sharp contrast to prior policies that successfully supported children and families. The 2021 expanded Federal Child Tax Credit helped to lift more than 2 million childrenout of poverty and reduced the country’s child poverty level to a historic low of 5.2 percent. This program will likely do the opposite. Research shows that private school voucher programs disproportionately benefit wealthy families. Consistent with many other provisions in the law, Congressional Republicans have chosen to prioritize a tax break that disproportionately benefits the wealthy, over nearly every other form of charitable giving, such as donations to food pantries, hospitals, or community services.
By incentivizing families to exit public schools, the voucher tax credit also undermines the financial stability of those schools, particularly in rural and high-need communities. Because education funding is largely enrollment-based, even modest shifts can lead to school closures, consolidations, and reduced services. This leaves behind those families who don’t have the time or resources to navigate private systems, and asks taxpayers to reimburse private donations on top of existing public education costs.
Civil Rights Protections Are Excluded
Public schools that receive federal funding are required to comply with federal civil rights laws, including Title VI and Title IX of the Civil Rights Act, the Individuals with Disabilities Education Act (IDEA), and Section 504 of the Rehabilitation Act. In 2024, ED received 22,687 civil rights complaints, including about 8,400 related to disability discrimination, reflecting just how often students and families rely on these protections.
These laws require schools to take corrective action to prevent and respond to discrimination, provide accommodations and services to students, investigate complaints, and offer families meaningful avenues for recourse. This is what public accountability looks like in practice, and its success depends on ED’s legal authority and the staff capacity to respond when families ask for help.
By contrast, the OBBA does not require scholarship-granting organizations or the private schools and programs they fund to comply with these federal civil rights protections, even though they benefit from publicly subsidized dollars. This means that if a student experiences harassment or discrimination based on race, national origin, sex, religion, or disability, families may have little or no ability to hold private schools accountable or seek remedies comparable to those guaranteed in public schools.
Evidence from state voucher programs shows why this gap matters. An investigation in North Carolina found that voucher funds flowed to private schools that were significantly whiter than the communities they serve, reinforcing racial segregation rather than expanding opportunity. In the absence of enforceable civil rights guardrails, public funding supports exclusionary practices that would be unlawful in public schools.
The Cost to Public Schools and Communities
Ultimately, this voucher/tax credit perpetuates a broader pattern of states, in addition to the federal government, stepping back from their responsibility to fully fund and strengthen public schools. Rather than address the systemic problems that perpetuate low-performing schools, it treats educational inequity as a series of individual problems to be solved by sending public dollars to private education. No matter how the administration spins it, these programs fail to prioritize students from lower-income families while simultaneously subsidizing private education for higher-income families. It invites taxpayers to feel as though they are helping children access opportunity, while leaving the underlying inequities in public education unresolved and, in many cases, deepened.
[Open the link to see data on source of insurance.]
This tax credit is projected to cost $26 billion, which is a high price tag that instead could be doing real good in public schools. If Congress instead invested this through Title I, that money would amount to roughly $1,238 per student in schools serving low-income communities. Research shows that investments of this size improve reading and math outcomes. In other words, we know how to use public dollars to help students succeed. This policy chooses not to.
Imagine putting that $26 billion, the lowest estimated cost of the tax credit over ten years, toward Title I, the federal program that benefits most public schools. That would more than double Title I’s current funding at $18.4 billion. Title I’s flexibility allows schools to meet their specific needs to improve student achievement: more teachers, aides, professional development, wraparound services, and more.
IDEA is supposed to fund 40 percent of each student’s special education each year, but the federal government has never met that promise. Current funding at $14.2 billion amounts to less than 12 percent of the promise. However, adding $26 billion to IDEA would almost triple current funding and completely close the gap.
We know that the unprecedented funding from the American Rescue Plan and other COVID relief packages will make a major return on investment: every $1,000 invested per student will be worth $1,238 in future earnings. That funding also required states to at least maintain their education budgets at prior funding so that the federal investment would not replace their responsibility and effort, but work together. The FTCS model completely disregards these precedents, and their values.
The Federal Tax Credit Scholarship Is a Heist Taken Straight from the Right’s Privatization Playbook
The Federal Tax Credit Scholarship program follows a familiar privatization strategy. It routes public dollars to private actors while stripping away the oversight, transparency, and civil rights protections that normally accompany public investment. Framed as generosity and choice, it instead creates a system in which taxpayers assume the cost while private schools and intermediaries operate largely beyond public accountability.
The program recreates many risks at a national scale. The schools and organizations receiving these publicly subsidized funds are not required to demonstrate academic results, comply with federal civil rights law, or provide transparency about how dollars are spent. Families are left without protections, taxpayers without accountability, and policymakers without evidence that the investment is improving student outcomes.
When public dollars are transformed into lightly regulated private subsidies, they invite exploitation. The Federal Tax Credit Scholarship is not an isolated policy choice: it follows a pattern of policies that weaken, and normalize weakening, public education while insulating private actors from responsibility. History shows where this path leads: higher costs, weaker safeguards, and fewer assurances that public investments serve the public good.
Notes
The Trump administration has taken multiple actions to reduce the role of the U.S. Department of Education, including firing staff and reassigning education programs and staff to other agencies through interagency agreements (IAAs) without congressional authorization. Such actions raise legal and governance concerns and further erode the education-specific expertise, oversight, and accountability that Congress has historically vested in ED.
Under the OBBA, the federal tax credit for contributions to SGOs applies to individual taxpayers. The law does not provide separate federal tax credit rules for corporate contributions; whether and how corporations might participate or benefit may depend on future Treasury and IRS regulations and state tax policies. Many states currently allow corporate contributions to SGOs.
Governor Sarah Huckabee Sanders is holding the line on spending, except for vouchers, which h will get a big boost. About 85% of the students using vouchers never attended public schools, so Governor Sanders is handing out money to pay for students already enrolled in private and religious schools.
Poor people in Arkansas don’t get much help in the budget, but affluent families get tax cuts and vouchers to pay for private schools, religious schools, and home schools.
Arkansas lawmakers are set to convene April 8 to hash out next year’s state budget. In a Wednesday letter to lawmakers, Sanders said she’s proposing a 3% increase, a pretty standard figure on par with recent years.
But what’s going to be funded in this mostly flat spending plan, and what’s not? At first blush, it looks like well-to-do Arkansans are the big winners, cashing in on private school vouchers and more income tax cuts.
Sanders’ proposed 2026-27 budget, presented to lawmakers by Arkansas Department of Finance and Administration Director Jim HudsonWednesday morning, includes up to $379 million for the Arkansas LEARNS vouchers that parents who opt out of traditional public schools can tap to pay private school or homeschool expenses. That’s a big increase over the $187 million budgeted for vouchers last time.
The 2025-26 school year was the first in which all students in Arkansas were eligible for these vouchers, and the price tag keeps creeping higher. Ballooning costs are pretty much a given, based on what’s happened in other states that pioneered this tricky transfer of wealth from the poor and middle class to their wealthy overlords by paying fancy kids’ tony tuitions for them. Just ask Arizona and Florida.
Lawmakers have made a number of adjustments and budget increases for LEARNS after voucher costs quickly exceeded the budgeted amount. In January, a legislative committee signed off on giving another $32 million in one-time reserve funds to Arkansas’s newly universal school voucher program, bringing its total cost in the current 2025-26 school year to $309.4 million, which covers more than 44,000 students. That $309 million is the base amount proposed for 2026-27, but Sanders’ budget proposes an extra $70 million for it, just in case.
Arkansas Advocates for Children and Families warned in January that vouchers are doing all the things opponents warned they would: creating new spending obligations for taxpayers to cover private school tuitions and other costs that were never on the public dime before; chipping away at public schools’ financial resilience; and generally busting budgets.
These set-aside amounts that were incorporated into the state’s school voucher fund this year, and which are being teed up to be added next year to the tune of $70 million, look a lot like a trap. Last go-round, lawmakers approved about $187 million for vouchers, but then added another $122 million to the school voucher cause in piecemeal fashion over the course of the fiscal year, to ultimately spend $309 million. Now lawmakers are looking at $309 million as the floor for voucher spending for 2026-27, and will almost certainly throw in that set-aside $70 million, too (if not more). How many hundreds of millions more are we going to add in these payouts for the well-to-do each year, in slapdash fashion? Don’t say we didn’t warn you!
Dr. Mike DeGuire is a lifelong educator who served as a principal of a public school in Denver. Now retired, he has assumed an active role in fighting privatization.
The dirty little secret of the voucher movement is that most of them are claimed by well-to-do families whose children were already attending nonpublic schools. Vouchers are a subsidy for people who were already paying tuition at private schools
His post was distributed by Advocates for Public Education Policy.
A4PEP introduced his statement:
Vouchers aren’t winning because voters love them. In fact, they keep losing at the ballot box.
So what’s going on?
In a new post, A4PEP Vice-Chair Dr. Mike DeGuire points to a big driver: billionaire-funded networks that keep pushing “school choice” as a marketplace, where public dollars follow students into private (often religious) schools.
It’s not just messaging, either. These efforts are backed by think tanks, lobbying, and big political spending, and now there’s a new federal tax credit plan that could supercharge scholarship-granting organizations with even less transparency.
If you want the clearest breakdown we’ve seen of who’s behind this and what it means for public schools, read Mike’s full post:
Public education is a public promise. Let’s protect it.
Dr. Mike DeGuire wrote about why vouchers have been winning despite lack of public support.
He said:
One answer: Billionaires
Billionaires Charles Koch, Betsy Devos, Jeff Yass, William Dunn, Phillip Anschutz, Michael Bloomberg, Reed Hastings, Bill Gates, Eli Broad, John Arnold, and the Walton and Bradley families have led the movement for private school choice through support for both charters and vouchers for over 30 years. Their goal is to dismantle what they call the “government school system” and to change how public education is funded. They want to create a “marketplace of options” so families can use money (vouchers) from public funds to send their children to private, religious, or home schools.
The marketplace concept allows billionaires and their investors to make money through real estate, tech and service contracts, and gain significant tax benefits. For many, the goal is to support religious schools which then profit from enrollment growth.
How did billionaires get the public to go along with their privatization goals?
They used their vast resources to set up think tanks and lobbying organizations which employ hyperbolic messaging with misleading data to communicate that public schools are failing, insisting parents need resources (vouchers) to find alternative schooling options. When their voucher goals met with resistance in the 1990s, billionaires focused on spreading charter schools instead, especially in major cities. The charter movement created the false narrative that parents should leave their local public school instead of focusing on increased funding to meet changing student needs.
During Trump’s first term, and after the pandemic hit, vouchers started to reappear, especially in red states, as billionaires backed pro-voucher candidates in state legislatures and Congress to secure favorable voucher legislation. However, not a single taxpayer-funded voucher program in the United States has been approved by voters. Every state voucher program was enacted by legislators, often under heavy pressure from well-funded pro-voucher lobbying groups. Billionaires also funded groups who lobbied Congress to pass the federal tax credit voucher scheme in July that enlists all 50 states to join in the billionaire’s version of “education freedom for private school choice.”
How will they use the “historic” federal tax credit to spread more vouchers?
Taxpayers in states that opt in to the federal voucher scheme select from a list of scholarship granting organizations (SGOs) to reduce their tax liability by $1700 when they pay their 2027 taxes. Billionaires have been funding K-12 SGOs for over 25 years. They use the money raised to give scholarships for students to attend private schools. These SGOs will have billions more from individual taxpayers to use for the same purposes. Billionaire John Walton, son of Sam Walton of Wal-Mart and the richest family in the US, co-founded the nation’s two largest scholarships granting organizations, ACE Scholarships and Children’s Scholarship Fund. Most of their scholarships go to students who leave public schools to attend religious schools.
The federal voucher program includes no spending cap, and the billionaires have already tossed in over $10 million to market the program. The voucher advocates are pushing hard for regulations that slam the door on any approach that does not further the growth of this largely unregulated voucher program.
The path forward: opt out, speak up, organize
This isn’t a grassroots uprising. It’s a long-running, well-funded project, one that keeps losing at the ballot box, so it shifts strategy: different messaging, different vehicles, same end goal. If we want truly “free” public education, we can’t let billionaires and private interests redefine freedom as a shopping spree financed by public dollars.
The path forward is clear, even if it’s not flashy. Communities can press state leaders not to opt in. Parents and educators can demand transparency from scholarship-granting organizations and insist on real accountability for any program that touches public money. And all of us can keep returning to the basic truth: the best “choice” is a fully funded, welcoming neighborhood public school, one that serves every child, not just the children a private system chooses to accept.
Public education is a public promise. We should protect it like one.
An audit of Arizona voucher funds for home-schools demonstrated that 20% of the purchases by parents were unallowable, spent on consumer items that had nothing to do with education, unless you consider condoms “educational.”
Of some 384,000 transactions from December 2024 to September 2025, about 84,000 were spent on non-educational purposes.
One way to stop this misuse of public funds is to bar those who misspend public funds from participating.
Audit data shows over 20% of vendor purchases made with Empowerment Scholarship Account dollars could be barred under the program’s guidelines.
The program, run through the Arizona Department of Education allows expenses for homeschooled students under $2,000 to be automatically approved by the department and later audited. But that audit could come months later, a process that Superintendent of Public Instruction Tom Horne has blamed on understaffing.
The program was initially designed primarily for students with disabilities but was expanded to be available for all students in 2022. Many homeschooled students are eligible to receive about $7,000 per year through the program, though money allocated to special needs students can be much higher.
Records released by the Arizona Attorney General’s Office show Arizonans have spent millions of dollars on expenses that appear to fall afoul of the program’s guidelines. A risk-based audit performed by the Department of Education found that 20% of purchases were “unallowed.” A risk-based audit is a financial audit that examines where problems are most likely to happen. In this case, the audit examined a random sample of purchases made through the ESA program.
When the department’s risk-based audit detects “unallowed” purchases, it then performs a full audit of the account to review the account holder’s other purchases. Of the accounts that received a full audit, 46% of the purchases made by those account holders were “unallowable.”
Attorney General Kris Mayes, a Democrat seeking reelection this fall, in a January letter to the Department of Education asked for tighter guardrails on expense approval.
“ADE must do more on the front end to prevent unallowable purchases, and it must do so immediately,” Mayes said in her letter.
Horne declined to comment to The Arizona Republic, saying his office would soon send a letter in response to Mayes.
But Mayes criticized the policy of automatically approving some purchases and auditing them later. That’s given people a “road map for how to game the system,” Mayes said.
What were the ‘unallowable’ ESA purchases discovered in the audit?
One of the heftier purchases was $7,500 in video gaming equipment.
Parents also paid themselves for homeschooling, which is prohibited under the program. One parent paid themselves $5,700, while others kept the payments to below $2,000.
Other expenses forbidden by the ESA handbook included coffee machines, $2,000 in Visa gift cards, a $1,700 diamond necklace and dog training. There were also trips to Mexico, a Kohl’s gift card, scuba diving equipment, swimming pools, condoms and lubrication.
As many of you know, I was born and raised in Texas. I grew up in Houston, third of eight children. I went to public schools, then to college in Massachusetts. I have never stopped being a Texan. I live in Brooklyn now but a part of my heart will always be in Texas. So I keep a close watch over developments in my home state.
The victories of James Talarico for Senate and Gina Hinojosa for Governor put Texas Democrats in a good position to turn Texas blue.
Gina Hinojosa coasted to victory in the Democratic primary over seven opponents. Soon after the polls closed, she had 61% of the vote. She will face incumbent Greg Abbot in November.
Talarico won the primary by 52.8% to Crockett’s 45.9%.
(Full disclosure: I contributed to all three campaigns.)
Talarico was a member of the state legislature. He has studied theology and is working towards a Master of Divinity at the Austin Presbyterian Seminary. He hopes to win independents and Trump voters with his deep religious faith and his rhetoric of love and reconciliation.
Under Governor Greg Abbot–now seeking his fourth term–Texas became an extreme MAGA state. Abbot echoes whatever Trump says , or says it first. Abbot is mean and has a stone heart.
Gina Hinojosa swept the Democratic primary for Governor. She is smart, articulate, beautiful, and Hispanic. One of the reasons that Democrats have not won a statewide office since 1994 is low turnout and growing Hispanic support for Trump. Gina was a featured speaker at the last conference of the Network for Public Education in Columbus, Ohio, and she was wonderful! As she explains in her PBS interview, strengthening neighborhood public schools is her top priority.
The Republicans running for Senate will compete in a May run-off. Jon Cornyn, the incumbent, is a reliable vote for Trump but not really MAGA. He seems like a moderate Republican who votes with Trump to protect his hide. Cornyn is running for his fifth term.
His opponent Ken Paxton is Attorney General of Texas, and it’s fair to say that he’s been scarred by scandals. His wife is a state senator. He cheated on her. Some of his staff blew the whistle on him and said he took payoffs from men he was investigating. The Republican House impeached him; the Republican Senate cleared him, thanks to generous donations by hard-right MAGA billionaires.
Paxton and Cornyn will have a runoff in May.
Talarico will be a strong candidate for the Senate. Hinojosa will be a strong candidate against Abbot, if Texans are sufficiently sick of pay-to-play politics.
The outcome will depend on turnout. Right now, Texas is run by a handful of oil billionaires. They want low taxes and minimal public services. They are Christian nationalists who love money and power.
If Talarico can attract the support of non-MAGA Republicans and if Gina can bring Hispanic voters to the polls, Texas will flip blue.
See Gina Hinojosa speaking at the Network for Public Education conference in April 2025, before the Republican-dominated Texas legislature passed vouchers. The passage of vouchers happened only after Governor Abbot primaried anti-voucher Republicans with the millions given him by billionaire Jeff Yass, the richest man in Pennsylvania.
See Talarico on how the worst people quote Dr. Martin Luther King Jr. on MLK Day and then violate his teachings every other day of the year.
Talarico on Christian nationalists, who–he says–are “more committed to the love of power than to the power of love.”
I love these two and will support them both. There will be a tidal wave of money pouring into Texas Republican coffers from other states to try to stop these two exciting Democrats!
The introduction of vouchers for private and religious schools is accompanied by certain lies.
Vouchers won’t cost much
Vouchers will save poor kids from failing public schools.
Voucher schools will be more accountable than public schools.
Vouchers won’t hurt public schools.
Every one of those claims is a lie. Vouchers always cost far more than was predicted. In every state, most vouchers are claimed by students who are already in enrolled nonpublic schools. Voucher schools typically are completely unaccountable for their use of public funds.
West Virginia passed a law to allow taxpayer-funded school vouchers in 2021, and they’ve been tweaking it ever since. They opened it up to more and more students. Consequently, the costs of the program are ballooning: when the law was passed, supporters declared it would cost just $23 million in its first year, and now the estimate for the coming school year is $245 to $315 million.
With that kind of money on the line, you’d think that the state might want to put some accountability and oversight rules in place. You know– so the taxpayers know what they’re getting for their millions of dollars.
But you would be backwards. Instead, the legislature is considering a bill to reduce accountability for private and religious schools. SB 216, the Restoring Private Schools Act of 2026, is short and simple. It consists of the current accountability rules for private, parochial or church schools, or schools of a religious order– with a whole lot of rules crossed out.
What are some of the rules that the legislation proposes to eliminate for private and religious schools? Here’s the list of rules slated for erasure:
The requirement for a minimum number of hours of instruction.
The requirement to maintain attendance and disease immunization records for each enrolled student.
The requirement to provide, upon request of county superintendent, a list of the names and addresses of all students in the school between ages 7 and 16.
The requirement to annually administer a nationally normed standardized test in the same grades as required for public schools. Ditto the requirement to assess the progress of students with special needs.
Since there’s no test requirement, there is also no requirement to provide testing data to parents and the state department of education.
The requirement to establish curriculum objectives, “the attainment of which will enable students to develop the potential for becoming literate citizens.” Scrap also the requirement for an instructional program to meet that goal.
So under this bill, private schools would not have to have a plan for educating students, would not have to spend a minimum amount of time trying to educate students, and would not have to provide the state with any evidence that they are actually educating students.
The bill does add one bit of new language:
As autonomous entities free of governmental oversight of instruction, private, parochial, or church, schools may implement such measures for instruction and assessment of pupils as leadership of such schools may deem appropriate.
In other words, private religious schools accepting taxpayer-funded vouchers may do whatever the hell they want.
The bill is sponsored by Senator Craig Hart. Hart calls himself a school teacher, and is mentioned as an agriculture/FFA teacher, though I could find no evidence of where he teaches. He was elected in 2024 after running as a hardcore MAGA. He has pushed for requiring Bibles in school, among other MAGA causes.
Said Eric Kerns, superintendent of Faith Christian Academy, “It just gives private schools a lot more flexibility in what they would be able to do as far as assessment and attendance and school days. Our accountability is that if people aren’t satisfied with the education they’re receiving, then they go to another private school or back to the public school or they homeschool.” Also known as “No accountability at all.” A school is not a taco truck.
As reported by Amelia Ferrell Knisely at West Virginia Watch, at least one legislator tried to put some accountability back in the bill. GOP Sen. Charles Clements tried to put back a nationally-recognized testing requirement and share results with parents. Said Clements
I want to see private schools survive, but I think we have to have guardrails of some sort. There’s a lot of money around, and it’s a way for people to come in and not produce a product we need … I think it just leaves the door open for problems.
Exactly. And his amendment was rejected. The School Choice Committee chair said the school could still use a real test if they wanted to, but the bill would allow more flexibility to choose newer test options; I’m guessing someone is pulling for the Classical Learning Test, the conservative unwoke anti-SAT test.
Democrat Mike Woelfel tried to put the immunization record back; that was rejected, too.
Look, the Big Standardized Test is a terrible measure of educational quality, and it should be canceled for everyone. But for years the choice crowd promised that once choice was opened up, we’d get a market driven by hard data. Then it turned out that the “hard data” showed that voucher systems were far worse than public schools, and the solution has not been to make the voucher system work better, but to silence any data that reveals a voucher system failure.
The goal is not higher quality education. The goal is public tax dollars for private religious schools– but only if the private religious schools can remain free of regulation, oversight, or any restrictions that get in the way of their power to discriminate freely against whoever they wish to discriminate against.
This is not about choice. It’s about taxpayer subsidies for private religious schools, and it’s about making sure those schools aren’t accountable to anyone for how they use that money. It’s another iteration of the same argument we’ve heard across the culture–that the First Amendment should apply because I am not free to fully exercise my religion unless I can unreservedly discriminate against anyone I choose and unless I get taxpayer funding to do it.
We’ve been told repeatedly that the school choice bargain is a trade off– the schools get autonomy in exchange for accountability, but that surely isn’t what’s being proposed here. If West Virginia is going to throw a mountain of taxpayer money at private schools, those schools should be held accountable. This bill promises the opposite; may it die a well-deserved death.
Diane Ravitch's blog 