NM Republican lawmaker urges Gov. Lujan Grisham to opt in to federal education tax credit program

A Republican state representative is urging New Mexico Gov. Michelle Lujan Grisham to enter the state into a new federal tax credit program, one that rewards people who donate to organizations that provide scholarships to students in public, private or charter schools. 

Rep. Rebecca Dow (R-Elephant Butte) on Monday sent the governor, who is a Democrat, a letter calling on her to opt the state into the federal Education Freedom Credit program, which was established in the “One Big Beautiful Bill Act” Congress passed last year. 

The program provides a dollar-for-dollar match of up to $1,700 per taxpayer in tax credits for those who donate to certain “scholarship-granting organizations.” New Mexico’s governor has to opt in to the program, which Dow said would boost donations to New Mexico organizations that provide tutors, transportation and other educational resources..

National pro-charter-school organizations have touted the credit as the biggest-ever federal program to incentivize private school tuition through tax incentives. 

That was part of the reason Democratic Gov. Tony Evers of Wisconsin recently vetoed legislation that would have entered the state into the program, saying in a veto message that, “Republicans in Washington have given private voucher expansion carte blanche to run roughshod over public education in this country — and a blank check to do so at taxpayer expense.”

Dow, in her letter, urged the governor to consider the measure and stressed that the organizations that could receive increased donations provide services to students regardless of what type of school they attend. 

“This is not about shifting students from one system to another,” Dow said in her letter. “It’s about ensuring that every child has access to the same kinds of opportunities and resources that many families already provide on their own.”

Dow cited the state’s consistently low rankings for education, particularly among low-income families. Their “lack of access to resources has serious and lasting consequences,” she wrote. 

Michael Coleman, the governor’s director of communications, told Source NM on Tuesday that the governor and the New Mexico Public Education Department are awaiting additional guidance from the U.S. Treasury Department on how the program will work. 

“We hope to receive that guidance and reach a decision soon,” he said in an email. 

Dow and fellow Republicans introduced a memorial this session that would have called on the governor to opt into the program. A Legislative Finance Committee analysis notes that some states are waiting on rules from the Treasury Department about which organizations would qualify donors for tax credits. 

The analysis also says that no deadline exists for states to opt into the program, which launches in 2027, though Dow, in her letter, said her request is urgent. 

“New Mexico’s students only get one chance at a quality education,” said Dow. “We have an opportunity right now to expand access, strengthen outcomes, and better support families who need it most.”