One Voice for Public Policy: A New Era for Parental Choice in Education

For well over 30 years the school choice movement has been working to empower parents to be in greater control of their children’s educational experience. That time has now arrived. With the passage of the Working Families Tax Cut Act last summer, parents now stand on the brink of a fundamentally new era of educational freedom and opportunity.
 
All of this is the result of the establishment of the first Federal Scholarship Tax Credit program in our nation’s history. In essence, it is a program which offers all taxpayers a strong incentive to make sizeable contributions to Scholarship Granting Organizations (SGOs). These contributions will, in turn, be bundled and used to give financial grants (scholarships) to parents who request them in order to cover the cost of a wide variety of educational services which would otherwise have to be paid for by the parent. Specifically, for every dollar donated by the taxpayer to an SGO, up to $1700 per taxpayer per year, the Federal government will reduce that person’s tax obligation by that same amount. Those services which qualify would include tuition at non-public schools (including religious schools), tutoring for all private and public school students, support services for students with disabilities, and many others.
 
The specific rules which will govern the program, which will begin operation on January 1, 2027, are currently being formulated by the Treasury Department and will be released later this year. However, the broad outlines of the program are known and can be accessed here.. 
 
The question is, what can and should we be doing in the meantime, during the remainder of 2026, as we wait for the program to begin operating?  In my view, there are three specific tasks which need to be accomplished. First, because the program requires each state to officially opt into the program, and since Governor Walz has not yet indicated whether he intends to enroll the State of Minnesota as a participant, one of our most pressing tasks is to encourage him to do so. Fortunately, this is an election year, and therefore, each of us will have the opportunity to impress upon him and all candidates for public office that we expect Minnesota to participate in this program so our children and grandchildren can access its benefits. This is especially true since the program entails absolutely no cost to the State of Minnesota.
 
Our second task for 2026 is an educational one. That is, we must use these intervening months to inform every taxpayer that, beginning in January of 2027, they will have the opportunity to redirect the first $1700 of their federal tax dollars away from Washington D.C. and toward a local SGO of their choice. Such an SGO would then pool their donation with that of others in order to make scholarships available to families in their area who wish to access Lutheran educational options. Among these options would be attending one of our traditional brick-and-mortar Lutheran schools, enrolling in a Lutheran online program, or being taught in a homeschool environment using Lutheran instructional resources. Which is to say, it will be our job this year to explain to our relatives, friends and neighbors how the program will operate, what the benefits of this program are, as well as urging them to take advantage of this no-cost opportunity to empower Christian parents in choosing a Christian education for their children. Perhaps the greatest obstacle to overcome will be the tendency of many to see the program as “too good to be true.” Our task will be to assure them that it is “true” … that it is legitimate … and that they should plan to participate.
 
And finally, our “2026 To Do List” must also include the planning for and establishment of new Scholarship Granting Organizations specifically designed to benefit the Lutheran Schools and families of your area. This will be an especially important task for congregations which operate Christian Day Schools and/or are affiliated with a Lutheran High School. By statute, these SGOs must always serve at least two different schools and must be independent charitable 501(c)3 organizations recognized by the State of Minnesota. Needless to say, the process of establishing such an SGO will require a good deal of time, effort, and expertise. Therefore, now is the time to get started. To that end, please feel free to contact either Rev. Fred Hinz, or Mr. Sean Martens, our District Education Executive to get more information.

Without exaggeration, this new Federal Scholarship Tax Credit program promises to be transformative on numerous levels. As a means of improving the educational experience of all Minnesota students in both public and private schools, this is an opportunity that needs to be fully embraced for the benefit of all families. But most especially, it offers a long-awaited means of stimulating the growth and vitality of our Lutheran Schools, thus allowing Jesus Christ to be proclaimed to more of our youth … allowing them to be more deeply rooted in God’s Word.
 
January 2027 will come quickly. For the sake of the Gospel, let’s be sure we are prepared to seize the exciting opportunities this new Federal Scholarship Tax Credit will offer. Again, for more specific information about the program click here.

In Christ,

Rev. Fred Hinz
Ordained Minister, LCMS, Emeritus
fghinz1227@gmail.com
1-507-317-9634

Rev. Scot Missling
Public Policy Advocate
Minnesota Districts, LCMS
pastorstpaullcms@gmail.com
651-776-4737