Some Colorado lawmakers want state ‘guardrails’ on Trump-backed education tax-credit program

An up close photograph of three students working on math at their desks showing only their hands, white notebooks, pencils and calculators.
Colorado Gov. Jared Polis has wanted the state to participate in a federal education tax-credit program because he believes it would increase charitable giving to support students. (Getty Images)

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Several Democratic state lawmakers have filed a bill that says private schools in Colorado that participate in a federal tax-credit scholarship program would need to abide by nondiscrimination laws that protect LGBTQ+ students and others.

Already, the bill filed last week has drawn concerns from Gov. Jared Polis, who has opted Colorado into the program that would allow an annual tax credit of up to $1,700 for donations made to scholarship-granting organizations. These organizations would then distribute scholarships to help families pay for private school tuition, tutoring, or after-school programs.

Governors across the country are required to opt into the program backed by President Donald Trump, and Polis was one of the first Democrats to announce he would do so. But opponents worry the program would effectively bring school vouchers to Colorado, an idea that voters have rejected in the past. Polis has said he doesn’t support school vouchers — which provide public dollars to families to pay for private school tuition — and doesn’t believe the tax-credit program is a voucher.

Concerned that Polis could veto an attempt to stop Colorado from participating in the federal program, the lawmakers behind House Bill 1292 said they decided to go this route instead.

“We can’t stop the governor from opting into this,” said Sen. Cathy Kipp, a Fort Collins Democrat and sponsor of the bill. “We can do the best we can to put some guardrails around its use so that these programs don’t discriminate against students.”

Colorado’s nondiscrimination laws safeguard against discrimination in places of public accommodation based on an individual’s characteristics such as disability, race, or gender expression.

The bill’s passage could prevent some religious private schools from participating. The state is already embroiled in a legal dispute about whether these schools can deny certain students entry to publicly funded preschool programs.

In a statement, Polis spokesperson Eric Maruyama said the governor sees the tax credits as a way to increase charitable giving that supports students, the majority of whom attend public schools. Polis is not interested in leaving money on the table, he said.

“Governor Polis is concerned that HB26-1292 would hamstring the state’s ability to bring new funding for much-needed services like afterschool programming and tutoring for all students across the state,” Murayama said.

Lawmakers are postponing a hearing on the bill until the federal government finalizes rules that would govern the program, said Democratic state Rep. Lori Goldstein, who represents Westminster and Northglenn. She also wants more time to talk with those affected by the bill and ensure the best version gets heard by lawmakers. It’s unclear when final federal rules will be released.

Goldstein said that she hopes her idea will encourage Coloradans to donate to organizations that serve all students and “public entities that they’re familiar with,” such as public education foundations.

The bill would require the state to list all eligible scholarship-granting organizations, including private schools. Those organizations would need to comply with nondiscrimination laws, including any related to students with disabilities.

The bill says that religious schools would still maintain their mission, hiring decisions, and the ability to offer religious instruction and worship.

Sen. Janice Marchman, a Loveland Democrat, said lawmakers plan to file amendments that would allow the state to vet the scholarship-granting organizations.

The bill is opposed by the Colorado Association of Private Schools and Christian Home Educators of Colorado. Neither organization responded to a request for comment for this story.

Several school districts and the Colorado Education Association, the state’s largest teachers union, have offered their support for the bill.

The education tax-credit program will begin in 2027 and was established by last year’s “big beautiful bill.” Families earning up to 300% of area median income would qualify for the program. The program has the potential to generate billions of dollars nationwide for private school tuition and other educational expenses at no cost to the states.

Although Polis wants Colorado to participate, the decision might hinge on the state’s next governor. Polis is term limited, and the next governor could decide to reverse his decision when they take office in 2027.

Jason Gonzales is a reporter covering higher education and the Colorado legislature. Chalkbeat Colorado partners with Open Campus on higher education coverage. Contact Jason at jgonzales@chalkbeat.org.

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