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FIRST ON FOX: States that decline to opt in to the Education Freedom Tax Credit could forgo nearly $23 billion in education funding over the next three years, according to a new analysis from the America First Policy Institute.
To highlight those potential losses, the group will launch an interactive Funding Loss Calculator designed to show how much each non-participating state stands to lose in charitable donations tied to the federal tax credit program. GET RID OF THE EDUCATION DEPARTMENT. GIVE POWER TO PARENTS The projections estimate that 23 states could miss out on nearly $23 billion between 2027 and 2029—equivalent to more than 4.1 million could be lost in scholarship opportunities for students. 'We wanted to make sure that governors know and especially, the people in the states know, what is being foregone if they do not opt in to this federal tax credit scholarship program,' Erika Donalds, chair of educational opportunity at AFPI, told Fox News Digital. 'The program will provide not just private school tuition, but homeschool expenses, curriculum assistance, tutoring, special needs services, dual enrollment and so many other resources for families,' Donalds said, adding that the funds come from private donations and not state budgets. So far, she added that so far, 28 governors have opted into the program. LA UNITED SCHOOL DISTRICT SCANDAL LEADS TO CHARGES AS $22M SCHEME ALLEGEDLY DRAINED FUNDS MEANT FOR STUDENTS Under the policy, taxpayers can receive up to $1,700 in dollar-for-dollar federal tax credits for donations to scholarship-granting organizations, which fund K–12 expenses such as private school tuition, homeschooling, tutoring and special needs services. But only students in participating states are eligible to benefit. That means taxpayers in states that opt out can still claim the credit—but their contributions are redirected to organizations in other states, effectively sending education funding elsewhere. As a result, the calculator allows users to model different participation rates and view projected losses on a state-by-state basis. Supporters say the tool is meant to underscore the potential consequences for governors weighing whether to join the program. CLICK HERE TO DOWNLOAD THE FOX NEWS APP 'Every parent deserves to make education decisions on behalf of their children. We have seen state after state where parents are begging for school choice options,' Donalds said. 'In Texas, in just one month, 250,000 applicants for a school choice program that is only going to accommodate about 80,000 students. In Tennessee, over 50,000 applications for a program that accommodates 20,000 student. There should not be wait lists on education freedom,' she added.
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