North Dakota to participate in new tax-credit scholarship program — and that’s a win for families
North Dakota Gov. Kelly Armstrong’s recent announcement that the state intends to opt in to the new federal tax-credit scholarship program reflects a clear commitment to empowering families rather than expanding bureaucratic systems.
This tax-credit model is more market-oriented than many tax incentives already in the federal tax code. It relies on voluntary transactions and routes resources through civil society instead of government agencies. Leveraging private initiative and voluntary participation gives families — especially those with limited means — access to more educational support services and options.
Scheduled to take effect Jan. 1, 2027, the new federal tax-credit scholarship program provides federal tax credits of up to $1,700 for individuals who donate to approved Scholarship Granting organizations (SGOs). These SGOs use those contributions to issue scholarships that families can direct toward a range of qualified educational expenses (established under the existing federal Coverdell Education Savings Account program).
Growing momentum
State leaders from multiple regions have publicly announced their intent to participate in the program, as opting in is a requirement in order for eligible students to receive the scholarships.
North Dakota joins a growing list of states, including its neighbors South Dakota and Montana, whose leaders have said they will also opt their states in to the program.
Alabama, Alaska, Arkansas, Colorado, Georgia, Iowa, Idaho, Indiana, Louisiana, Mississippi, Missouri, Nebraska, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming are the other states whose governors have said they plan to opt in. Four governors have said they won’t participate (Oregon, New Mexico, Wisconsin, and Hawaii), while 20 governors and the mayor of the District of Columbia have not formally decided or haven’t announced decisions.
The timing of Gov. Armstrong’s announcement aligns seamlessly with National School Choice Week (Jan. 25-31). By making this move during a period dedicated to celebrating educational options, the governor not only highlights the importance of parental choice but reinforces what North Dakotans have been making clear — they want more education policy that helps remove barriers preventing them from accessing the educational options that best support their children’s growth and potential.
Capitol celebration
To help capture this sentiment and celebrate National School Choice Week, American Experiment North Dakota in partnership with the National School Choice Awareness Foundation, Americans for Prosperity North Dakota, and Ed Choice hosted an event at the Capitol on Tuesday (Jan. 27) highlighting the importance of opportunity in K-12 education.
Students, teachers, and parents were excited to visit and tour the Capitol (including the Monkey Room!), celebrate school choice, read the governor’s school choice week proclamation, and share what they love about their learning environment.
It was a positive, celebratory event highlighting the importance of educational freedom and student success.