Senators urge Ferguson to sign state into federal education credit by Jan. 1

State Senator Leonard Christian and several Senate Republican colleagues have sent a formal letter to Gov. Bob Ferguson, urging the executive to opt Washington into the federal Education Freedom Tax Credit program before a January deadline.

The group argues that the governor must set aside partisan politics to allow Washington families to claim a federal income tax credit for donations to approved Scholarship Granting Organizations.

Federal rules require states to submit an advance election form by January 1, 2027, to participate in the upcoming tax year. The state must also provide a certified list of Scholarship Granting Organizations by February 15.

If Washington acts in time, the state could capture an estimated $700 million to $1 billion annually in federal tax-credited donations from individuals and businesses, according to the College Success Foundation and Washington Student Success Coalition.

Under the program, individual taxpayers can claim a dollar-for-dollar credit of up to $1,700 against their federal income taxes. Married couples filing jointly can claim up to $3,400.

Scholarship Granting Organizations convert these private donations into direct educational scholarships for K-12 students. Federal rules mandate that these organizations spend at least 90 percent of their total receipts directly on educational scholarships.

Christian stated that the program would not reduce the state budget or public-school funding. He described the initiative as a way for residents to direct a fraction of their federal tax liability toward local children.

The senator cited recent research indicating that Washington test scores in math and reading remain about eight percentage points below pre-pandemic levels. Students are roughly half a grade level behind where they stood in 2019, and nearly 30 percent of students are chronically absent.

Christian said he and his wife, Rima, intend to make the maximum $3,400 joint contribution. He hopes the donation will fund an after-school reading tutor for a struggling child in Spokane Valley or Tacoma, or help a teenager in rural Eastern Washington afford specialized learning tools.

The senators warn that if Olympia refuses to act before January 1, Washington residents can still donate and claim the federal credit, but the lack of certified local organizations would mean those donations could not legally benefit children in the state. In that scenario, Christian said he would direct the funds to participating states such as Texas, where his grandchildren reside, allowing millions of dollars in private donations to leave Washington entirely.