WASHINGTON, D.C. – Congressman Brad Finstad (MN-01) led his fellow Minnesota Congressional Republicans in sending a letter to Governor Walz urging him to reconsider Minnesota’s decision not to participate in the Education Freedom Tax Credit (EFTC), a federal tax credit available to eligible donors who contribute to Scholarship Granting Organizations (SGOs).
Beginning January 1, 2027, the EFTC will offer eligible taxpayers a federal tax credit of up to $1,700 annually for cash donations to nonprofit SGOs, which can be used for tuition, books, supplies, academic tutoring, and special needs services. Donors choose whether to give, families choose whether to apply, and parents choose the school that fits their child. States must opt in for residents to participate, requiring Minnesota to approve the program and identify eligible organizations.
The letter reads:
Dear Governor Walz,
We write to express our strong disappointment with your administration’s decision to reject participation in the Education Freedom Tax Credit (EFTC), established under the Working Families Tax Cuts. By refusing to opt Minnesota into this program, your administration is denying families access to an additional resource that could expand educational opportunities, strengthen academic support, and empower parents to make decisions in the best interests of their children. At a time when Minnesota’s education system is struggling to deliver the results our students deserve, rejecting an opportunity to help students succeed is unacceptable.
Beginning in 2027, EFTC will offer eligible taxpayers a federal tax credit of up to $1,700 annually for cash donations to nonprofit Scholarship Granting Organizations, which fund qualified K-12 educational expenses. States must opt-in for residents to participate, requiring Minnesota to approve the program and identify eligible organizations. Thirty-one states have indicated they will participate, including New York, Virginia, and Colorado.
By opting in, Minnesota would give eligible families access to a new source of educational assistance without requiring the state to create an entirely new scholarship funding stream. The program would also give taxpayers an additional way to support students and educational opportunities in their communities.
Opting in can directly benefit public schools by providing resources that reinforce classroom instruction. It would allow eligible Minnesota students and families to benefit from a federal program designed to expand educational options. Scholarship funds can be used for tutoring and academic intervention, after-school and summer learning programs, special education services, career readiness programs, books and supplies, and transportation assistance. Your administration should be pursuing every reasonable opportunity to improve educational outcomes, not rejecting a federal program that could help Minnesota students get ahead.
Minnesota’s success depends on preparing the next generation with the knowledge and skills necessary to succeed. When students receive the educational support they need, they are better positioned to pursue higher education, enter the workforce, and contribute to their communities. At the hands of your leadership, students’ math and reading test scores are down throughout the state, and many of our young students are not at proficiency level for their grade. EFTC can bring the state additional resources to help raise Minnesota’s education ranking.
It is important that your administration works with the Minnesota Legislature, parents, educators, and scholarship organizations to ensure transparent implementation, strong oversight, clear eligibility standards, and accessible information for families.
We urge you to reconsider your decision and opt Minnesota into the EFTC so families can access the same opportunities as those in participating states. Your administration cannot credibly claim to prioritize student achievement while refusing to consider every available tool to improve it. Our students deserve every chance to learn and succeed, and political differences should not stand in the way of expanding educational options.
We look forward to your response explaining why your administration chose to reject this opportunity and whether you intend to reconsider that decision. Minnesota students and families deserve a clear answer, and they deserve a governor who will fight to expand their opportunities to learn, achieve, and succeed.
Sincerely,
Brad Finstad, Member of Congress
Tom Emmer, Member of Congress
Pete Stauber, Member of Congress
Michelle Fischbach, Member of Congress
