Washington faces a projected $2.3 billion budget shortfall this fiscal year, with K–12 education encountering renewed funding pressure despite its $33.6 billion allocation in the 2025–2027 biennium. As OSPI identifies specific reductions and unresolved structural gaps for 2026, policymakers are evaluating options that support students without increasing state expenditures.
The Federal Tax-Credit Scholarship (FTCS) Program, enacted in 2025, offers such an option. Participation is voluntary and requires Washington to opt in by January 1, 2027. The program does not draw on state education funding and does not reduce appropriations for public schools.
Under FTCS, taxpayers may contribute to independent, nonprofit Scholarship Granting Organizations (SGOs) and receive a federal tax credit of up to $1,700. At least 90% of contributions must be awarded as scholarships to eligible students for educational expenses, including tuition, fees, books, transportation, tutoring, and technology. This structure distinguishes FTCS from publicly funded voucher programs.
Eligibility is straightforward. Students must:
- Be eligible to enroll in a public elementary or secondary school in Washington; and
- Come from households earning no more than 300% of their area’s median income.
(For context, using Washington’s statewide median income for a family of four ($132,384), the upper income limit would be approximately $397,000, though actual thresholds will vary by region.)
Even limited participation could have a measurable impactin WA. An estimated 1% taxpayer participation could generate approximately $24 million annually to support public and private school students, with higher participation increasing that figure. National polling shows broad bipartisan voter support for this approach, which keeps taxpayer dollars in the taxpayers’ state.
The FTCS program is intended to complement existing public education systems by providing families with additional, privately funded support options during a period of fiscal constraint. As Washington considers responsible, student-centered responses to ongoing budget challenges, this program warrants careful review.
