McMahon urges Shapiro to put Pennsylvania into national school choice program

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(The Center Square) – During an annual gathering of conservatives in the suburbs of Harrisburg on Friday, U.S. Education Secretary Linda McMahon urged Pennsylvania Gov. Josh Shapiro to opt the state into a federal school choice program. 

“It couldn't be more of a win-win for students in all states,” McMahon said of the federal Education Freedom Tax Credit.

This program, enacted as a result of the President Donald Trump-backed Working Families Tax Cuts Act, established a new federal tax credit of up to $1,700 for contributions made to a Scholarship Granting Organization, or SGO. The Department of Education describes SGOs as “nonprofits that accept qualified contributions from individuals and use the funds to provide scholarships for education-related services at private or public schools, including tuition, fees, academic tutoring, and classroom supplies.”

States can decide whether to opt in to become a “covered state” under this program. 

According to the Commonwealth Foundation, a conservative think-tank that supports school choice, 29 states have decided to participate. 

A majority of the states that have opted in to the federal school choice program are led by Republican governors, although McMahon said that “a couple Democratic governors” have come on board with it.

Prior to her appearance at the Pennsylvania Leadership Conference, she joined Republican lawmakers for a rally on the steps of the Capitol Rotunda in Harrisburg. 

McMahon said that Shapiro has done “some good things” in Pennsylvania with regard to school choice, saying that there is a “very similar state tax provision” in place in the commonwealth.

That provision, the Educational Improvement Tax Credit Scholarship, uses personal and business donations to give financial aid to students at private schools. A second program, the Opportunity Scholarship Tax Credit, further targets the donations to students living in low-performing districts.

In the most recent budget, the programs will provide up to $590 million in assistance.

“So, I’m surprised, actually, that he hasn’t opted in, and so we were there to encourage him to do just that,” McMahon said.

States that opt in must provide a list of SGOs that meet the statutory requirements by January 1 of each calendar year, according to the Department of Education. Students eligible to enroll in a public elementary or secondary school and from a household with income not greater than 300% of the area’s median gross income qualify for a scholarship through the Education Freedom Tax Credit.

The topic of school choice has become an issue of intense debate during Shapiro’s tenure in office, particularly during his first budget negotiations. 

In August 2023, Shapiro signed a state budget that was set to include a state-funded school choice program, titled “Pennsylvania Award for Student Success Scholarship Program,” or PASS, but instead decided to deliver a line-item veto of the statewide $100 million voucher program.

The decision fractured negotiations between Senate Republicans, who back the program as an option for children living in under-resourced districts, and House Democrats, who believe PASS and other credits like it siphon taxpayer money to private schools.

Shapiro hasn’t ruled out support for expanded school choice programs in Pennsylvania, but has said it's up to the legislature to figure out and send a bill to his desk.

Outside the halls of the Capitol in Harrisburg and on the campaign trail in 2024, Republican Dave McCormick said he supported a national school choice program during his bid for U.S. Senate.

After winning the seat, he became a co-sponsor of the federal proposal.

McCormick, also in attendance for the annual conservative gathering at the Penn Harris Hotel on Friday, described school choice as an example of “giving people the opportunity to live the American dream.”

“It gives parents and kids an opportunity to pick a school that’s best for them,” he said. 

McCormick said he’s talked to Shapiro about it and has encouraged him to opt-in. He also penned an op-ed in the Philadelphia Inquirer on the matter. 

“But this is an example of an opportunity where Pennsylvania needs to lead. Our governor needs to lead,” McCormick said. “The federal government and President Trump already led to create this opportunity.”

“But if we really care about kids having opportunity and prospering, and being able to compete in this world, that’s changing so quickly, this is the best way to do it, and I'm excited about it,” he added. “But man, what a disgrace if all of us donate money or people donate money and Pennsylvania kids don’t get to take advantage of it. So it's a real opportunity moment, but we haven't seized it yet.”

Shapiro hasn’t ruled out opting in, according to WGAL, with a spokesperson saying that the administration is waiting for federal guidance to address key questions about the program, including student eligibility, how the initiative will interact with existing programs, and other details.