U.S. Education Secretary McMahon Urges Michigan to Join Federal Tax Credit Scholarship Program

Education Secretary Linda McMahon Visits Michigan, Pushes State to Opt Into Federal Scholarship Program

LANSING — U.S. Education Secretary Linda McMahon made a visit to Metro Detroit on Friday, urging Governor Gretchen Whitmer and state officials to enroll Michigan in a federal tax credit scholarship program that would allow donors to receive tax benefits for contributing to nonprofit scholarship funds for K-12 students.

McMahon addressed media during a stop at Hamtramck Academy, a charter school that enrolls approximately 550 students, where she toured with Republican lawmakers including Michigan House Speaker Matt Hall.

How the Program Works

Trump's Education Freedom Tax Credit enables donors to receive a federal tax benefit for contributing to nonprofit organizations that grant scholarships to students for education-related expenses, including textbooks, tutoring, after-school programs, and tuition at private and religious schools.

Under the program, taxpayers who donate can receive a tax credit of up to $1,700, reducing the amount of federal taxes they owe starting in 2027. There is no cap on the total scholarship money a student can receive, according to fact sheets from the federal Treasury and Education departments. The scholarship organization determines the amount based on its mission.

State Control Over Participation

McMahon emphasized that state officials would have significant control over the program. She told reporters that state leaders would be responsible for approving which nonprofit organizations could hand out scholarships, giving Michigan officials "a great deal of control" over how the program operates.

McMahon said her understanding was that state officials could choose organizations that only work with public schools, though House Speaker Hall indicated he believes children at both private and public schools would be able to apply for scholarships.

Whitmer's Position

Earlier in March, Governor Whitmer stated she needed more information before making a decision about whether Michigan would join the program. She described the initiative as a "high-level talking point" for the Trump administration and noted that no guidance had been released with actual detail on the subject.

McMahon responded to Whitmer's comments on Friday, suggesting they amounted to dismissing the scholarships. "The Education Freedom Tax Credit isn't some distant idea, it's a homegrown solution that puts Michigan families in charge," McMahon said.

Political Context

Twenty-seven states have opted into the program so far, according to McMahon. The program was made possible through the federal One Big Beautiful Bill Act, which was signed last summer.

Michigan House Speaker Matt Hall has been encouraging Whitmer to sign Michigan into the program. "If Michigan does not opt in, that means that money that people are saving through the tax credit will go to kids in other states and that doesn't make much sense. We want Michigan to benefit," Hall told reporters.

Democratic Pushback

Education advocates have criticized the program, with critics likening it to school vouchers. Katherine Nitz, media relations coordinator for the Michigan Education Justice Coalition, told Bridge Michigan the program would weaken public schools and set the stage for privatization.

"We're already fighting for enough funding as it is, this voucher scheme would be a match that would just light the system on fire," Nitz said. "It's unconstitutional, it's risky, and puts our entire public school system in jeopardy at a time when we should be doubling and tripling down on the funding that we are putting into the system."

The Michigan Constitution prohibits using public funds for private school attendance. Only two Democratic governors — in Colorado and North Carolina — have said their states will likely join the program, according to Chalkbeat.

State Department of Education Response

State Superintendent of Public Instruction Glenn Maleyko did not directly answer whether he wants the state to opt in. "My priority is adequate and equitable funding for public schools in Michigan," Maleyko said in a statement. "I believe federal resources should be devoted to those priorities."

Broader Education Investment Debate

Whitmer and state legislative Democrats and Republicans have all called for the state to invest more in getting Michigan students caught up after test scores slipped to a new low last year. The parties have different ideas for what that looks like.

Republicans say the state needs more accountability measures in place rather than more money on its own. Democrats say the state needs to make up for state funding falling behind the pace of inflation.

Income Eligibility Requirements

Students eligible to enroll in a public elementary or secondary school and from a household with income not greater than 300 percent of the area's median gross income qualify for a scholarship through the Education Freedom Tax Credit, according to federal guidelines.

While Michigan does not have a state private school choice program, roughly one in four Michigan public K-12 students attend a charter school or use the state's choice program to attend a school outside their local district.

Historical Context

Last September, McMahon visited public charter schools in Detroit and nearby Redford, Renaissance High School in Detroit, and Hillsdale College, a private college that does not accept federal funding. That evening, she touted the benefits of the tax-credit scholarship program at an event hosted by the Midland County Republican Party.

In 2021, Whitmer vetoed a measure that would have created a similar program at the state level. Now, some education advocates are pushing her to keep the same resolve despite the federal pressure.