K-12 federal tax-credits

TO THE HONORABLE BOB FERGUSON, GOVERNOR OF THE STATE OF 1
WASHINGTON, AND TO THE WASHINGTON STATE OFFICE OF FINANCIAL 2
MANAGEMENT: 3
We, your Memorialists, the Senate and House of Representatives of 4
the State of Washington, in legislative session assembled, 5
respectfully represent and petition as follows: 6
WHEREAS, Public Law 119-21, enacted July 4, 2025, established a 7
federal tax credit for contributions to scholarship granting 8
organizations that provide educational assistance to eligible K-12 9
students; and 10
WHEREAS, This federal investment program supports students in 11
both public and private schools, ensuring that the majority of 12
Washington's K-12 students attending public schools can access 13
educational assistance for tutoring, special education services, 14
extended day and enrichment programs, curriculum materials, 15
technology, and other qualified expenses; and 16
WHEREAS, This federal program enables individual taxpayers to 17
direct up to $1,700 in federal tax credits annually toward 18
educational assistance for students from working class and middle 19
class families, transforming federal tax policy into direct 20
educational support; and 21
WHEREAS, Scholarships are restricted exclusively to students from 22
working class and middle class families with household incomes at or 23
H-3089.1
HOUSE JOINT MEMORIAL 4013
State of Washington 69th Legislature 2026 Regular Session
By Representatives Keaton, Walsh, Ley, Rude, Schmick, Connors,
Marshall, Corry, Abell, Griffey, Barnard, Engell, Couture, Schmidt,
Dufault, Barkis, McEntire, Jacobsen, Dent, Chase, Stuebe, Graham,
Burnett, and Orcutt
Read first time 01/23/26. Referred to Committee on Education.
p. 1 HJM 4013
below 300 percent of area median gross income, ensuring federal 1
resources reach students who need educational support most; and2
WHEREAS, Based on Washington state's population and income 3
demographics, this federal program could conservatively generate 4
approximately $732 million in annual donations to scholarship 5
granting organizations serving Washington students; and6
WHEREAS, The program becomes effective for taxable years ending 7
after December 31, 2026, requiring timely state action to ensure 8
Washington families can benefit beginning in 2027; and9
WHEREAS, Participation in this program is voluntary, requiring 10
the governor to elect participation and identify qualifying 11
scholarship granting organizations within the state; and12
WHEREAS, Opting into this federal program requires zero state 13
expenditure, imposes no mandate on the state budget, creates no 14
obligation for future state funding, and directs federal resources to 15
Washington students that would otherwise go unused or benefit 16
students in other states; and 17
WHEREAS, Washington taxpayers will receive these federal tax 18
credits whether Washington opts in or not, meaning the only question 19
is whether their donations support educational assistance for 20
Washington students or students in other participating states; and21
WHEREAS, Failure to opt in would result in Washington forfeiting 22
an estimated $732 million annually in federal educational support 23
that would instead flow to schools and students in states that have 24
opted into the program, putting Washington students at a significant 25
competitive and educational disadvantage; and 26
WHEREAS, Scholarship granting organizations must meet stringent 27
federal accountability standards, including annual financial audits, 28
public reporting of expenditures, prohibition on self-dealing, income 29
verification requirements, and mandatory spending of at least 90 30
percent of funds directly on student scholarships, ensuring federal 31
dollars are used efficiently and reach eligible students; and32
WHEREAS, Washington state has a compelling interest in ensuring 33
working families can access the same federal educational support 34
available to families in other states, particularly when declining to 35
participate would result in no benefit to Washington families while 36
federal resources flow to students elsewhere; 37
NOW, THEREFORE, Your Memorialists respectfully call on Governor 38
Bob Ferguson to: 39
p. 2 HJM 4013
(1) Exercise his authority under section 25F (g)(1)(B) of the 1
internal revenue code to elect Washington state's participation in 2
the Federal tax-credit scholarship program for K-12 educational 3
expenses established by Public Law 119-21, and to do so without delay 4
to ensure no Washington family is denied access to these federal 5
benefits; and 6
(2) Direct the appropriate state agency or designate an 7
appropriate entity to establish a process for identifying and listing 8
qualified scholarship granting organizations operating in Washington 9
state, as required by section 25F (g) of the internal revenue code; 10
and 11
(3) Complete the election and submit the required list of 12
scholarship granting organizations to the internal revenue service by 13
January 1, 2027, or as early as practicable, to ensure Washington 14
families can benefit from the program beginning in the 2027 tax year;15
BE IT RESOLVED, That the Legislature declares that opting into 16
this federal program will: 17
(1) Direct an estimated $732 million in annual federal education 18
funding to Washington students at zero cost to state taxpayers;19
(2) Provide educational assistance to students from working class 20
and middle class families attending both public and private schools 21
throughout Washington; 22
(3) Transform federal tax credits into direct scholarships for 23
allowable education expenses, including tutoring, special education 24
services, educational therapies, curriculum materials, technology, 25
and other qualified K-12 expenses; 26
(4) Ensure Washington families receive the same federal 27
educational support as families in participating states, rather than 28
allowing these federal resources to flow exclusively to students in 29
other states that have opted into the program; 30
(5) Create no financial obligation for the state budget while 31
leveraging federal investment to expand educational opportunities for 32
working families; and 33
(6) Subject all participating scholarship organizations to 34
rigorous federal accountability standards, including financial 35
audits, public reporting, and requirements to spend at least 90 36
percent of funds on student scholarships; and 37
BE IT FURTHER RESOLVED, That copies of this Memorial be 38
immediately transmitted, to the Honorable Bob Ferguson, Governor of 39
p. 3 HJM 4013
the State of Washington, and to the Washington State Office of 1
Financial Management. 2
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