Vermont is at a crossroads in education policy. Costs continue to rise, outcomes are worsening, and families are increasingly looking for options that better meet their children’s needs. Yesterday, on the Senate floor, Senator Ann Cummings (D-Washington) highlighted a new federal opportunity that could meaningfully expand educational access in Vermont, especially for low-income children. The federal Tax Credit Scholarship Law offers states a rare chance to do so without increasing the burden on taxpayers. Governor Phil Scott should seize this chance.
The federal Tax Credit Scholarship program is simple. It encourages private donations to nonprofit scholarship organizations by offering a 100% federal tax credit, up to $1,700 annually. Those donations are then used to fund K-12 educational expenses, including tutoring, supplemental services, and, depending on state definitions, tuition across public, charter, private, religious, or even homeschool settings.
Participation is optional, but the barrier to entry is remarkably low. Under the law, Governor Scott simply needs to opt in through a short form and submit a list of qualifying scholarship organizations to the U.S. Treasury each year. That’s it. No new state bureaucracy. No new taxes. No legislative overhaul. Just a decision to participate.
For Vermont, the upside is substantial. This program would bring new private funding into Vermont’s education system without costing the state anything, as charitable donations are redirected into scholarships and supplemental education supports. At a time when the state is already spending around $30,000 per pupil and still facing concerns about outcomes, it makes sense to welcome additional resources that can help children succeed in ways that traditional systems sometimes struggle to deliver.
Senator Cummings emphasized that this could be particularly valuable for low-income families, who often have the fewest options when their local school is not meeting their needs. Scholarship programs like this can help close the gap by giving families access to tutoring, specialized services, or alternative learning environments that would otherwise be out of reach, recognizing that education is not one-size-fits-all and giving families more flexibility to choose what works best.
The research on school choice is extensive. Across hundreds of studies, the overwhelming majority show positive effects ranging from improved academic outcomes to higher parental satisfaction and even gains within public schools due to increased competition and innovation
If Vermont chooses not to opt in, it will needlessly miss out.
Taxpayers who want to take advantage of the federal credit will simply send their donations to scholarship organizations in states that have opted in. That means Vermont could miss out on millions of dollars in potential education funding. Those dollars will flow across the border to states like New Hampshire, leaving Vermont families without the same opportunities.
This is not a complicated policy choice. The federal government has created a mechanism to encourage private investment in education. All Vermont needs to do is say yes.
Governor Scott has an opportunity to expand educational opportunities, attract new funding, and give families more control over their children’s futures.
He should take it.
