Oregon Says No to Trump’s Education Tax Credit

Gov. Tina Kotek decided that Oregon will not join a federal plan that would let families claim up to $1, 700 in tax breaks for paying school costs. The program, part of a 2025 law by the Trump team, pairs tax cuts with reductions to Medicaid and food‑stamp aid. All Republican governors have signed on, and a few Democrats – Colorado’s Jared Polis and New York’s Kathy Hochul – have also joined. Kotek, who had been seen as undecided, said the rules from Washington do not give Oregon enough room to act in line with its values. Supporters like former Education Secretary Arne Duncan argue the money can help public schools by funding tutoring, enrichment and special‑education services. Critics fear it will funnel funds into private or religious schools with little oversight.

Oregon’s teachers union has been uneasy with Kotek, refusing to back her in the primary and threatening legal action over a 2024 order that barred school districts from cutting instructional days. The union’s support for the governor has been inconsistent, which may influence how state leaders view federal programs. Families earning up to 300 percent of the local median income could receive scholarships or services funded by these tax credits if Oregon chose to participate. The credit would be available starting in 2027, but for now the state’s students must rely on other resources. Three more Democratic governors – Minnesota, New Mexico and Wisconsin – have also opted out. With 31 states on board, Oregon remains one of the few that has rejected the federal offer.

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