Concerns Over Colorado’s Federal Education Freedom Tax Credit Program

May 2026

Colorado Governor Jared Polis has officially enrolled Colorado in the Federal Education Freedom Tax Credit program. Established under the One Big Beautiful Bill Act (OBBBA), this initiative offers a dollar-for-dollar federal tax credit of up to $1,700 for individuals who donate to scholarship-granting organizations (SGOs). Gubernatorial participation is required for students in each state to access these scholarships, which can be applied toward private school tuition or public school enrichment programs.

Governor Polis supporting Federal Tax Credit Voucher Program

Several education organizations have voiced apprehensions regarding the program. Public Funds, Public Schools—a project of the Education Law Center—has highlighted issues related to insufficient accountability and transparency. To address these concerns, Public Funds, Public Schools will host a webinar on May 12, 2026, to discuss the implications of the Tax Credit Program.

Webinar Signup -> No Accountability, No Transparency: Scholarship Granting Organizations under the Federal Voucher Program | Public Funds, Public Schools

  • “With the program projected to funnel tens of billions of federal tax dollars through SGOs to vouchers, this webinar will highlight how these organizations have repeatedly been shown to lack adequate accountability and transparency, leading to significant waste, fraud, and abuse of public funds. SGOs also heighten the risk of discrimination against students and families with their broad discretion over who receives a voucher. The panel will discuss why the growth of SGOs under the federal voucher scheme is yet another reason states should reject the program and instead use public funds to support and strengthen public schools.”

Invest in Education Foundation Event with Governor Polis

Excerpt from  “Other Democratic governors are wary of new Trump school funding program. Not Polis.” “Norm Brownstein, a prominent national lobbyist based in Colorado, introduced Polis, describing the initiative as the culmination of a “40-year” effort to establish a federal school choice program. Brownstein’s firm worked closely for years with the Invest in Education Coalition, the 501(c)(4) arm of Invest in Education, which lobbies for federal school choice legislation and has maintained close ties to the Trump administration. Brownstein also serves on the national board of ACE Scholarships, one of three Colorado-based SGOs represented at the event. ACE Scholarships was founded in 2000 by conservative donors, including billionaire John Walton, son of Walmart founder Sam Walton. John Walton argued that “public schools would only improve, if ‘customers’ — parents — had the power to leave ineffective schools and take the money with them.”  The Walton Family Foundation has since spent billions of dollars nationwide supporting charter schools and voucher initiatives.”

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