Kentucky Assembly Overrides Veto to Join Education Freedom Tax Credit Program
The Kentucky General Assembly overrode a veto to join the newly created Education Freedom Tax Credit program.
The federal program gives taxpayers up to a $1,700 tax credit for contributing to approved Scholarship Granting Organizations (SGO), nonprofits that provide scholarships for education-related expenses like tuition, fees, tutoring and classroom supplies at public or private schools.
Kentucky joins almost 30 other states that have opted in or plan to participate in the program thus far.
The Assembly passed House Bill 1 in late February, but Governor Andy Beshear vetoed the measure. The House voted 77-14-1 to overturn the veto, and the Senate followed up with a vote of 31-5.
David Walls, executive director of The Family Foundation of Kentucky, a pro-life, pro-family organization, applauded the veto override, saying:
The final passage of HB 1 by the General Assembly is a huge win for all Kentucky students. This program will give Kentucky students more resources to further their education regardless of where they go to school, a victory for educational freedom and parental rights.
In his veto message, Governor Beshear pointed to the Kentucky Constitution which requires public dollars be used only for public education – not private schools. He stated:
With House Bill 1, the [Republican] supermajority is at it again, wanting to use a federal tax credit to divert public dollars to private schools.
But the governor was disingenuous. No public dollars are involved in the program, and no state money, either.
Private citizens choose to donate to a nonprofit SGO – or not. Those organizations give scholarship money to K-12 students, many of whom attend public schools but will receive assistance for tutoring and school supplies.
No state money is diverted from public schools.
Even if students use the scholarship to attend a private school, it doesn’t take Kentucky dollars from public schools.
The Education Freedom Tax Credit was created as part of the Working Families Tax Cuts Act, also known as “The One Big Beautiful Bill Act.” While any taxpayer can donate to an SGO and receive the tax credit, states must join the program for its K-12 students to receive scholarship money.
Next, as the Departments of Education and Treasury explain in a fact sheet, the state provides a list of qualifying SGOs to the federal government. Taxpayers can donate to any listed organization and receive the tax credit.
K-12 students in participating states “from a household with income not greater than 300% of the area’s median gross income” can then apply for scholarships for educational needs.
Taxpayers in states that don’t join the program can still donate to a qualified charitable scholarship organization and receive the tax credit, but students from that state will not be able to apply for scholarships.
Walls explained that the program, like all educational freedom measures, benefits all families, allowing them to improve their children’s academic achievement:
This new Federal Scholarship Tax Credit program exists to give more choice and opportunity to students across the country. If the governor and teachers unions had their way, Kentucky students would miss out on money that students in other states have access to.
Thankfully, the General Assembly chose to stand with Kentucky families and students over ideology. With the final passage of HB 1, Kentucky students are better off and will have more educational opportunities moving forward.
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