Lansing Sun

State Representative Tim Kelly (R-93) has urged Governor Gretchen Whitmer to opt Michigan into the federal School Choice Tax Credit Program. The program, part of the “One Big Beautiful Bill” signed by President Donald Trump on July 4, 2025, offers a permanent federal tax credit for donations to Scholarship Granting Organizations that assist families earning up to 300% of the local median income.

“This program delivers a permanent, 100% federal tax credit—up to $1,700—for every donation to Scholarship Granting Organizations that serve families earning up to 300% of the local median income,” Kelly explained. “The deadline to opt in is looming, and Michigan students should not be left on the sidelines.”

Kelly pointed out that participation requires an affirmative decision from state leadership. Without opting in before the approaching deadline, Michigan families would be unable to access these scholarships. Unlike public school funding, which goes directly to schools, this initiative provides funds straight to students and parents for uses such as tuition, tutoring, therapy services, and technology.

“Opting in costs Michigan nothing. It doesn’t divert school funding—it simply empowers donors and directs federal support straight to families,” said Kelly. “Failure to act will leave struggling students locked out of the opportunity to attend schools that meet their needs.”

School choice advocates have encouraged governors across the country to participate in this program.

“Michigan students deserve real alternatives,” Kelly continued. “Governor Whitmer now has a clear choice: stand with families or side with the status quo. I urge her to join the 40+ states already considering participation, give Michigan’s children a voice, and act before the end-of-year deadline.”

Eligibility for these scholarships includes families making up to three times the median income in their area—a threshold that covers about 85–90% of K–12 students statewide. The funds are flexible and can be used for private schooling costs as well as educational expenses like tutoring or technology upgrades. Since donor contributions fund these credits at no cost to state taxpayers, there is no direct financial impact on Michigan’s budget.

Representative Kelly emphasized his position: if Governor Whitmer wants “to stand by struggling students and bolster parental empowerment without costing Michigan taxpayers a dime,” she must act before year’s end or face accountability regarding educational outcomes in Michigan.

Tim Kelly currently chairs the Appropriations Subcommittee on School Aid & Department of Education and has previously served as Saginaw County Commissioner and party chair.