Michigan Weighs Federal Tax Credit for Private School Aid

Families could gain access to scholarships for books, tutoring, and private school tuition if Michigan opts into the program.

Updated on Nov. 10, 2026 in Financial Aid

Bold flat-color editorial illustration of a single capitol dome silhouette above a horizon with an open book shape beneath, in navy and cream with a red accent. — Michigan's Detroit Regional Chamber urged Governor Gretchen Whitmer to opt the state into a federal tax credit that funds private school scholarships. AI Illustration. Upload story photo >

Live Poll

Should Michigan use the federal tax credit to fund private school scholarships?

The Detroit Regional Chamber has urged Michigan Governor Gretchen Whitmer to opt the state into the federal Education Freedom Tax Credit, which lets donors give up to $1,700 to scholarship granting organizations. Whitmer and four other Democratic governors have separately asked the U.S. Treasury Department for more information on how the program works.

Why it matters

The program would route tax-credit-backed donations into scholarships that students could use for books, tutoring, and private school tuition, so opting in would change which families can access those funds. The push comes as the Chamber argues Michigan needs stronger education results, and it raises a debate over whether public-supported tax benefits should fund private schooling.

The federal credit allows a $1,700 donation to a Scholarship Granting Organization, and more than 30 states have opted into the program. The Michigan Constitution bans public money from going toward private schools, and voters rejected a state-funded voucher proposal in 2000.

The players

Gretchen Whitmer

Governor of Michigan, the official whose decision would determine whether the state opts into the federal tax credit.

Detroit Regional Chamber

A Detroit-area business advocacy organization that has urged the state to join the Education Freedom Tax Credit program.

U.S. Department of the Treasury

The federal agency that administers the Education Freedom Tax Credit and is being asked by governors for more information about it.

Dana Nessel

Michigan Attorney General who has publicly criticized the program in an op-ed.

The details

Under the federal Education Freedom Tax Credit, a taxpayer can donate up to $1,700 to a Scholarship Granting Organization, which then awards scholarships to students. Those scholarships can be used for books, tutoring, and private school tuition. A state must opt in for the program to operate there, which is why the Detroit Regional Chamber has asked Governor Whitmer to join. Michigan's constitution prohibits public money from going to private schools, a restriction that shapes how opt-in decisions are weighed.

In 2000, Michigan voters rejected a state-funded voucher program proposal.
Last month, in October 2026, Whitmer and four other Democratic governors wrote to the U.S. Treasury Department requesting more information on the program.
On November 9, 2026, the Detroit Regional Chamber's letter urging Whitmer to join the program was publicized.

Education Landscape

Michigan voters rejected a state-funded voucher program in 2000, and the state's constitution still bars public money from flowing to private schools. The current debate shifts the question to a federal tax credit that more than 30 states have already adopted.

If Michigan opts in, families could become eligible to receive scholarships funded by donations under the federal credit, and those scholarships could be applied to books, tutoring, or private school tuition. Families considering this option should ask their school or scholarship provider about eligibility rules and how awards are paid out.

The takeaway

The debate over the federal Education Freedom Tax Credit centers on whether Michigan will opt in, and no decision has been announced. Families interested in private school scholarships can ask their school or a scholarship granting organization about eligibility and how awards would be applied.