Governor Michelle Lujan Grisham announced Wednesday that New Mexico will become the 32nd state to opt into the Federal Scholarship Tax Credit program, a new federal scholarship tax initiative created by the Trump administration’s One Big Beautiful Bill Act. The program, which takes effect on Jan. 1, 2027, allows eligible taxpayers to claim a federal tax credit of up to $1,700 for charitable contributions to qualified nonprofit scholarship‑granting organizations (SGOs). Those SGOs then award scholarships to K‑12 students for qualified educational expenses such as tutoring, special‑education services, instructional materials and more.
State rationale and expected benefits
“At a time of diminishing federal investment in education, New Mexico must take advantage of every dollar we can to bolster public education and continue our state’s upward trajectory in literacy and student achievement,” Governor Lujan Grisham said in a statement. The governor’s office added that the New Mexico Public Education Department will soon establish a certification process for SGOs and will accept applications once guidelines are released.
Republican state leaders welcomed the decision. State Rep. Rebecca Dow (R‑Elephant Butte), who lost her reelection bid in early November, had urged the governor to join the program earlier this year. In a phone interview she said, “The governor has done the right thing. Public schools and charter schools are eligible to receive these funds to build programs on their campuses without costing the New Mexico taxpayer a dime.” State Sen. Gabriel Ramos (R‑Silver City), ranking member of the Senate Education Committee, called the move “common sense,” noting that it “puts more opportunities in front of New Mexico students and lets parents choose the tutoring, services, or school that fits their child’s needs.”
Union opposition
Teachers’ unions in New Mexico reacted sharply. In a joint news release, Whitney Holland of the American Federation of Teachers New Mexico and Bethany Jarrell of the National Education Association New Mexico called the decision “nothing short of a betrayal” to students and families in public schools. The unions described the tax credit as a “voucher scheme” that benefits “well‑off individuals who can donate thousands of dollars” to SGOs in order to reduce their federal tax liability. Jarrell said she was “shocked” by the governor’s announcement and added that educators had been reaching out to ask Lujan Grisham not to proceed.
Both union leaders argued that the program would divert resources away from public schools and undermine the principle that every child deserves a well‑funded, fully supported public school in their community.
Context and national picture
The Trump administration has promoted the scholarship tax credit as a way to expand school choice and empower families to direct education dollars toward the settings that best meet their children’s needs. Critics contend the program could siphon money from public schools, but supporters argue it restores parental control and injects private‑sector resources into education at a time when federal funding has been reduced.
New Mexico joins Democratic governors Kathy Hochul of New York and Jared Polis of Colorado in opting into the program, while Democratic governors Tim Walz of Minnesota and Tina Kotek of Oregon have declined. Two Democratic governors in Wisconsin and Arizona vetoed legislation that would have required participation, and 15 states, including Washington D.C., have not yet decided.
Next steps
The state education department will release certification guidelines for SGOs in the coming weeks, and eligible organizations will be able to apply for participation. The administration’s response to union criticism remains pending.
Original reporting: Organ Mountain News (Las Cruces / Doña Ana County) — read the source article.
