AFPI Statement on Veto of Education Freedom In Arizona

WASHINGTON, D.C.—Today, Erika Donalds, chair of Education Opportunity at the America First Policy Institute (AFPI), issued the following statement following the veto by Governor Katie Hobbs of Arizona’s legislation (Senate Bill 1142) that would have permitted participation in the new federal tax credit scholarship created in the Working Families Tax Cuts Act:

“With decades of providing education freedom to thousands of families, Arizona has paved the way for reforms across the nation. Opting in to the education freedom tax credit is widely viewed as a straightforward decision. The state successfully operates four state education tax credits and is in the best position to offer more. The new tax credit would simply add one more tool for families – at no cost to the state nor public schools – to provide options to directly benefit students.

“Nearly 30 states are committed to participation, and those that refuse are only allowing private donations to go elsewhere. Arizona stands to lose almost one billion dollars over the next three years, which equals 177,000 students without scholarships. AFPI has faith that education freedom will continue to advance in Arizona, regardless of the obstacles. We commend the legislature’s policy agenda that keeps Arizona in the lead.”

Starting in 2027, individuals can claim up to $1,700 in dollar-for-dollar tax credits for donations to scholarship-granting organizations (SGOs) that award scholarships to K-12 children. But SGOs can only receive donations in states that formally opt in. Formalizing Arizona’s participation will be yet another way parents can ensure their students receive the education they need well into the future.