NEWS
Governor still weighing New Mexico's participation in federal education tax credit program
Republican lawmaker urges governor to join more than 20 others states that have opted in
SANTA FE 鈥 Despite voicing initial opposition to a federal school choice program, Gov. Michelle Lujan Grisham has not made a final decision about whether New Mexico will participate.
Amid pressure from Republican lawmakers to opt in, Lujan Grisham is seeking more information from President Donald Trump鈥檚 administration before making up her mind, a spokesman said this week.
鈥淭he governor is actively considering whether to opt in but is awaiting more information from the Department of Treasury about the flexibility of the funding,鈥 Lujan Grisham spokesman Michael Coleman told the Journal.
He also said a decision was expected to be made soon, but did not provide a firm deadline.
The White House to opt in to the federal education freedom credit program, which allows taxpayers to obtain a dollar-to-dollar tax credit of up to $1,700 for donating to scholarship-granting organizations that help students attend private schools.
Scholarships issued under the tax credit program, which will officially be launched next year, for some expenses for public school students, including tutoring and after-school programs. The program was created as part of the federal budget bill passed by the GOP-controlled Congress last summer.
While mostly Republican-led states have announced plans to opt in so far, Colorado Gov. Jared Polis, a Democrat, that New Mexico鈥檚 northern neighbor would also participate.
Some New Mexico Republicans have urged Lujan Grisham to follow suit, and state Rep. Rebecca Dow, R-Truth or Consequences, said in a letter to the governor this week that students around New Mexico would benefit from the tax credit program.
鈥淭his opportunity presents a rare moment for our state to deliver meaningful, student-centered support to families, particularly those who need it most, without placing additional strain on our state budget,鈥 Dow wrote in her letter.
For states that opt in to the federal program, students will be eligible to receive scholarships as long as their family鈥檚 annual income does not exceed 300% of their area鈥檚 median income. For Albuquerque, that cutoff would have been about $204,000 in annual income in 2024, according to U.S. Census Bureau data.
However, teachers unions have largely criticized the program, arguing it amounts to a voucher program that could translate to fewer resources for public schools.
Whitney Holland, the president of the American Federation of Teachers union in New Mexico, said this week she was planning to reach out to the Lujan Grisham administration with information from the national union.
鈥淔rom our point of view, it鈥檚 a disastrous program,鈥 said Holland, who said the federal program could specifically disenfranchise students in rural New Mexico communities that lack school choice options.
In addition, some critics have noted the federal tax credit program could also indirectly lead to on public schools, since less revenue from taxpayers will be available. Congressional estimates have projected that in tax credits are likely to be issued next year.
Education spending in New Mexico has surged in recent years, and the state is set to spend about $4.8 billion on K-12 public schools in the coming year 鈥 about 43% of the state鈥檚 total $11.1 billion budget.
However, New Mexico has continued to rank near the bottom of most national education rankings, despite improvements in the state鈥檚 reading proficiency rate.
Meanwhile, only about 6.5% of the state鈥檚 roughly 340,000 students attended a private school as of 2022, from the Learning Policy Institute, a California-based research and advocacy group. That figure was lower than the national rate of 8.7% of K-12 students attending private schools.
Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at or reach him via email at dboyd@abqjournal.com.