For decades, Wisconsin has been a pioneer in providing educational options to families, but this has generally only been available to those who choose to opt out of traditional public schools via private school choice or programs like open enrollment. A new federal option could open funding opportunities for all Wisconsin kids, but the state must choose to participate.
Provisions in the recently passed “One Big Beautiful Bill Act” created the first-ever federal K–12 tax credit scholarship program. Under the bill, individuals can receive a dollar-for-dollar federal tax credit of up to $1,700 per year for donations to certified Scholarship Granting Organizations, or SGOs.
SGOs, in turn, award scholarships to families for a wide range of qualifying expenses. This could include tuition at a private school but many services for other kids as well. For example, an SGO could be created to provide special education therapies or tutoring for public school students, homeschool curriculum, books, software, transportation and other supports already permitted under federal Coverdell accounts.
But there is a critical catch. Wisconsin must actively opt in to participate. Under the law, a state can only participate if its governor, or another entity designated under state law, formally elects to opt in. In Wisconsin, that authority does belong to the governor. The governor is required to annually provide a list of qualifying SGOs in the state. If this list isn’t provided, Wisconsin kids will not be eligible for the funds. Unless the governor acts, Wisconsin families across all sectors — including public schools — will be left behind families in other states.
This creates a powerful incentive for private individuals to give, unlocking new streams of funding for students without increasing the burden on taxpayers. In states that choose to participate, parents will have more options and nonprofit SGOs can leverage local expertise to fill gaps that public systems may struggle to address. It’s a solution that values flexibility, customization, and grassroots innovation.
Importantly, these scholarships are not limited to low-income families. Eligibility is open to students from households earning up to 300 percent of the median family income in their region, allowing access for more middle-class families who often fall through the cracks. SGOs have flexibility to design the scholarships they offer, including how much to award, who is eligible, and how families apply. One SGO could focus on low-income families, while another could focus on struggling readers.
This program does not use government funding. It does not create a new federal bureaucracy. It is private giving, through nonprofit SGOs, with a 90 percent minimum requirement to spend donations on scholarships. There is no cap on the total volume of tax credits available, and the program is permanent law.
This program is a rare opportunity to empower parents and support students without spending a dime of state money. It puts private dollars to work for public good, letting families decide what educational supports their children need.
This “education expansion” should not be a partisan issue. Whether it is a better school, a specialized tutor, or a much-needed therapy, Wisconsin families deserve every tool available to help their children succeed. Wisconsin’s governor shouldn’t stand in the way of private donors utilizing this option to the benefit of students. The federal government has opened the door. Wisconsin’s governor should walk through it.
Will Flanders, PhD, is the research director and Cory Brewer is an education attorney at the Wisconsin Institute for Law & Liberty.
