Federal school choice regs have been published: MLG is on the clock

After months of waiting, the Trump Administration has just published regulations for the federal school choice tax credit.

Married couples filing jointly can claim up to $3,400 a year in federal tax credits for qualifying cash donations to K-12 scholarship organizations beginning in 2027 under proposed Treasury rules released Oct. 1, drawing praise from school choice advocates.

The clarification would allow each spouse to claim the $1,700 credit available to an individual taxpayer, resolving concerns that married couples filing a joint return would be limited to a single credit.

The Treasury estimated that, by 2030, more than 11 million taxpayers could contribute nearly $26 billion annually to 600 to 700 scholarship granting organizations (SGOs), supporting as many as 2.2 million scholarships a year.

This is money that Gov. Lujan Grisham can choose to retain in New Mexico for the benefit of increasing educational options and even pumping money into charter and traditional public schools (in addition to non-public schools).  Lujan Grisham has said she would decide once the regulations have been created. We hope she’ll decide in the affirmative. She has until she leaves office to make her choice. If you are inclined, you can send a brief email to the Gov. here. 

As the map below highlights New Mexico is one of the states that has NOT embraced the program to date while Colorado with left wing Gov. Jared Polis has signed on as has New York under left wing Gov. Kathy Hochul.