Maryland families hoping to tap into a new federal scholarship tax credit are stuck in limbo, and the state's unresolved governor's race could decide whether that changes. As of October 27, Maryland had not opted into the program, according to the IRS, and Gov. Wes Moore has not announced whether he intends to join. His Republican challenger, Dan Cox, says he would sign Maryland up immediately if voters put him in office.
The Federal Scholarship Tax Credit became law through passage of the so-called Big Beautiful Bill in 2025, and it allows individual taxpayers to claim an annual credit of up to $1,700 for contributions to an IRS-approved scholarship granting organization starting in January 2027, according to WBFF's Project Baltimore. Eligible families could then receive K-12 education scholarships from an approved scholarship granting organization, with the money covering private school tuition, tutoring, after-school programs, classroom supplies and textbooks. But there's a catch: state governors must opt into the program before any Maryland families can receive funds through a scholarship granting organization.
That decision now sits squarely with Moore, a Democrat running for re-election, who has stayed conspicuously quiet on his plans. Project Baltimore reported it contacted both Moore's campaign office and his Annapolis office multiple times seeking an interview about his intentions and received no response.
Moore's 'Tax Scheme' Comment Resurfaces
Moore's silence stands in contrast to comments he made in July, when he spoke at the American Federation of Teachers' annual convention in Washington, D.C. — the nation's second-largest teachers' union. During that appearance on July 19, Moore called the program a tax scheme, a remark his office later confirmed referred specifically to the Federal Scholarship Tax Credit.
Cox, the Republican gubernatorial candidate, pushed back hard on that characterization, saying Moore misrepresented the program by calling it a scheme. Cox described it instead as bipartisan and intended to fund students' education, arguing that the funds follow the student, go to the parent, and must be spent on education. He urged Moore to opt in immediately so Maryland doesn't miss out on needed funds, calling the tax credit very helpful to all Maryland students, and said he would opt in himself if elected governor.
Where Maryland Stands Nationally
Maryland is far from alone in sitting on the sidelines, though the roster of states joining in is growing. As of October 27, 31 states had opted into the program, and Michigan was among 19 states that had not yet decided for the coming year, as reported by Chalkbeat. Five Democratic governors, including Michigan's Gretchen Whitmer, asked the Treasury secretary for clarity on the program that same week, raising questions about oversight, allowable expenses, costs, fraud prevention and access for low-income students.
Other Democratic governors have taken the opposite approach. New York Gov. Kathy Hochul opted her state into the program in October, becoming the second Democrat to do so after Colorado Gov. Jared Polis, per the same Chalkbeat outlet. Hochul said the program has the potential to bring millions of additional dollars to New York students and families without taking a single dollar from public schools or state and local budgets — a framing teachers' union president Michael Mulgrew rejected, calling it a failure of leadership that gives up local control of public education to the federal government's private school voucher scheme.
Not every state has embraced the credit, either. Michigan Attorney General Dana Nessel raised concerns that administering the program could use state resources to support private-school attendance, potentially running afoul of her state's constitution, the outlet reported. The Baltimore Banner quoted Josh Cowen, a Michigan State University professor, on the program.
Maryland's Teachers Union Pushes Back
If Maryland does join, residents could donate up to $1,700 a year to a nonprofit of their choosing that awards scholarships, according to the Banner's reporting. Those scholarship granting organizations could then use the donations for private-school tuition, tutoring and other educational expenses, Chalkbeat has reported.
The Maryland State Education Association opposes the idea outright. The union argues the program's fundamental framework is designed to funnel funds to private school tuition, and warns it could both strain the federal education budget and encourage students to leave public education, reducing public-school funding in the process, according to the Banner.
A Deadline That Depends on Who You Ask
Exactly how much time Moore has to decide is itself a matter of dispute. Project Baltimore reported that Moore must opt into the program by January 1 for Maryland to participate in 2027. Chalkbeat similarly reported that states have until January 1 to opt in to be eligible for funding when the program begins in 2027. But the Banner has reported there is no deadline for Moore to make a decision to opt in, while noting that scholarship granting organizations would need to start collecting donations in January to support schools for the 2027-2028 school year. A U.S. Department of Education fact sheet, separately, says states must submit an advance election on Form 15714 by January 1, 2027 — paperwork that may be distinct from the governor's underlying decision to participate.
Whatever the actual timeline, the choice now rests on the outcome of Maryland's governor's race, with Moore's silence and Cox's pledge to opt in immediately setting up a clear contrast for voters watching how the state handles the new credit.
