On July 4, 2025, Congress passed, on a bipartisan vote, a package of reconciliations, commonly referred to as the One Big Beautiful Bill Act. Included in the bill was a provision that created the Education Freedom Tax Credit (EFTC), which funds elementary and secondary education programs. This scholarship will allow taxpayers to contribute up to $1,700 to Scholarship Granting Organizations (SGOs), which will in turn grant scholarships to students at public and private elementary and secondary schools in their state.
This program is set to take effect on Jan. 1, 2027, but governors and state lawmakers need to opt in now.
There are currently more than 800,000 students enrolled in Minnesota public schools, across more than 300 districts and over 2,000 schools. Minnesota also offers open enrollment options for students, though limited, which allows students to attend public schools outside their assigned district, public charter and magnet schools, private schools, and online or homeschool learning. However, Minnesota ranks 30th for open enrollment policies nationally per a 2023 study. The grants provided by these scholarships could supercharge education freedom for Minnesota families.
The money from these scholarships can be used for a variety of expenses, including but not limited to: tuition, books, computers, special needs services and enrollment costs. This would allow families the financial freedom to enroll their children in educational programs that better fit their needs. Cash contributions made by taxpayers to SGOs will benefit the families in their state, if their state opts in. If governors decide to not opt in to the program, contributions made by individuals in that state will still be accepted but go to families in other states and communities. Minnesota is one of 22 states (including the District of Columbia) that has not yet opted in—with Gov. Tim Walz publicly stating that it’s “never going to happen” in a March press conference at the Minnesota Capitol. You heard that correctly. At a time when school districts across Minnesota are making drastic cuts to their budgets, Gov. Walz said “never going to happen” to a lifeline provided by the federal government.
Minnesotans will lose big if we forgo opting in.
Families in our state could lose more than $800 million in funds from SGOs within the first three years of operation—which is equivalent to about $1,000 per Minnesota public school student. That would amount to a loss of 145,000 scholarships. This money could be a game-changer for families who want to seek better educational options for their students but currently can’t afford it or for public schools that need a budgetary life preserver. Critics of these school choice programs, which include the Minnesota teachers’ union and some state lawmakers, often cite concerns of declining public schools. This is an absurd argument. Opting into EFTC would pull back public schools from a financial cliff at no cost to the taxpayer.
According to the latest NAEP scores from 2024 for Minnesota, only 45 percent of fourth graders were at or above proficient in mathematics, and that percentage decreased to 34 percent for eighth graders. Only 31 percent of fourth graders are proficient or above in reading, which drops to a miserable 28 percent for eighth graders.
These grades aren’t just Fs, they’re low Fs.
Parents are pushing for better options for education for their students, and these federal education scholarships would empower them to do so. Over 70 percent of voters want their governor to opt in to this program, and 78 percent said they would be likely to apply for these scholarships if they were offered in their state. To opt in, governors or a designated entity simply need to fill out a one-page form from the Department of Treasury and Internal Revenue Service.
Zach Freimark serves as executive director of the America First Policy Institute’s Minnesota state chapter.
Sarah Hitchcock serves as director of the Education Freedom campaign at the America First Policy Institute.
The views and opinions expressed in this commentary are those of the authors and do not represent an official position of Alpha News.
Zach Freimark
Zach Freimark serves as executive director of the America First Policy Institute's Minnesota state chapter.
Sarah Hitchcock
Sarah Hitchcock serves as director of the Education Freedom campaign at the America First Policy Institute.
