One of the questions surrounding the new federal school voucher program is whether it will be flexible enough that the money can be used to support public schools. Jan Resseger runs down the discussion. Reposted with permission.
In a recent column in the Washington Post, Arne Duncan suggested that even Democrat-led states can opt into the One Big Beautiful Bill’s tax credit school voucher program and redirect the funds into public schools or at least into programs that support achievement in public schools as a way to replace COVID American Rescue Plan funds that have run out. “This solution is a no-brainer,” he declares.
Here is Arne’s prescription: “The new federal tax credit scholarship program, passed as part of the One Big Beautiful Bill Act, allows taxpayers to claim a dollar-for-dollar federal tax credit for donations to scholarship-granting organizations, or SGOs. These SGOs can fund a range of services already embraced by blue-state leaders, such as tutoring, transportation, special education services and learning technology. For both current governors and gubernatorial candidates, it’s a chance to show voters that they’re willing to do what it takes to deliver for students and families, no matter where the ideas originate. By opting in, a governor unlocks these resources for students in their state. Some Democratic leaders have hesitated, however, worried that the program could be seen as undermining public schools, since private scholarships are also eligible. But that misses the point.”
Remember that Arne Duncan launched Race to the Top, which brought No Child Left Behind’s test-and-punish regime into the Obama years by offering gigantic federal grants as a bribe for states to turn around their lowest scoring 5% of public schools with rigid improvement plans—with the schools that failed to improve being closed or charterized—and with the teachers being held accountable and punished if they couldn’t quickly raise test scores. Because none of Arne’s programs worked out, I am hesitant to take Arne Duncan’s advice.
It is wiser to heed Kevin Welner’s warning in a new policy memo: Governors Beware: The Voucher Advocates in DC Are Not Serious about Returning Education to the States. Welner is a professor of education policy at the University of Colorado, Boulder and the director of the National Education Policy Center.
Welner explains that the One Big Beautiful Bill requires the governors of the states to opt into the federal tax credit vouchers (or choose to opt out). As Welner lists how the money can be used, it is clear that the federal dollars can be spent on private education but that, in addition, some programs supporting public schools themselves or their students could qualify: “Under the OBBB, nonprofit Scholarship Granting Organizations (SGOs) in states opting into the program are authorized to pool the donated money and then hand out “scholarships” for students’ ‘qualified elementary or secondary education expense[s].’ This is limited to the expenses allowed for Coverdell Savings Accounts,¹ which are tied to school-related needs, such as tuition, fees, and academic tutoring; special needs services in the case of a special needs beneficiary; books, supplies and other equipment; computer technology, equipment, and Internet access for the use of the beneficiary; and, in some cases, room and board, uniforms, transportation, and extended day (after-school) programs.”
Welner continues: “This idea of ensuring that each state could implement the program in ways that allow all flexibility is consistent with the Trump administration’s vociferous embrace of “returning education quite simply back to the states where it belongs.” Welner, however, remains skeptical that the Trump administration really plans to return control of federal dollars back to the states:
“Unfortunately, the U.S. Treasury Department rulemaking is likely to deny states the promised flexibility, notwithstanding the administration’s rhetoric about ‘returning education to the states.’ While the law’s ardent supporters may want Democratic governors to participate, they don’t want to give them the flexibility permitted by the law itself… (T)he key issues for state leaders, particularly the governors who will make the opt-out or opt-in decision in most states, involve whether they can shape the program as it is implemented in their states.” Welner lists key concerns for governors and for those of us who have watched the damage done by the voucher programs now established by many state legislatures. “Governors will want to know… if they can:
- “Place requirements on SGOs involving reporting, governance, transparency, access, non-discrimination, profiteering, and prioritization of students with greater need;
- “Require that schools and other vendors… be accessible to students and not engage in discrimination against protected groups of students, including members of the LGBTQ+ community;
- “Put quality-control policies in place to weed out the lowest-quality of these vendors;
- “Limit the program to just one or two of the Coverdell categories, ideally research-based options such as high-impact tutoring and after-school programs.”
Welner warns, however, that powerful advocates at the federal level are “pushing hard for regulations that slam the door on any approach that does not further the growth of largely unregulated voucher programs.”
He recounts many of the problems with state level private school tuition vouchers: Josh Cowen’s research documenting low academic achievement in voucher programs in Louisiana, Indiana and Ohio; the failure of voucher programs to protect students’ civil rights; “free-exercise” justification for public dollars diverted to religious schools; failure to provide programs for disabled students; diversion of massive state dollars to support private school tuition for wealthy students; and states’ failure to regulate teacher qualifications, curriculum, equal access, and oversight of tax dollars.
Welner thinks governors might do well to wait to make the decision about opting in until they can review the formal guidance which will eventually be provided by the U.S. Treasury Department. “(F)or state leaders who are tempted to opt in, that decision could be publicly announced as conditional on the Treasury regulations allowing the state the flexibility to include specified access, quality, and non-discrimination protections for the state’s students. ”
He concludes: “In sum, the federal scholarship tax credit may look to some state leaders like an opportunity to secure additional resources for students, but the risks are profound. The structure of the law, coupled with the likely direction of Treasury rulemaking, points toward a program designed not to empower states but to constrain them—pushing states into a rigid, federally controlled voucher system that undermines educational equity and quality and presents long-run threats to the fiscal stability of public schools.”
¹https://www.law.cornell.edu/uscode/text/26/530 The term “Coverdell education savings account” means a trust created or organized in the United States exclusively for the purpose of paying the qualified education expenses of an individual who is the designated beneficiary of the trust (and designated as a Coverdell education savings account at the time created or organized), but only if the written governing instrument creating the trust meets the following requirements….”