Lujan Grisham Signs New Mexico Into Federal School Choice Program

Gov. Michelle Lujan Grisham announced Wednesday that New Mexico will join the federal Education Freedom Tax Credit program. She made the decision one day after voters chose her successor. This move reverses her position from January and makes New Mexico the 32nd state to participate. She becomes the third Democratic governor to sign on, following Kathy Hochul of New York and Jared Polis of Colorado.

The program takes effect on Jan. 1. It provides a federal tax credit of up to $1,700 for individuals or $3,400 for married couples filing jointly. Taxpayers can claim this credit for cash donations to nonprofit scholarship-granting organizations. These organizations award scholarships for tuition, fees, tutoring, and supplies at public, private, religious, or charter schools. Students from households earning no more than 300% of the area median income are eligible. The U.S. Treasury Department estimates this covers about 95% of American children.

New Mexico does not currently have certified scholarship-granting organizations. States must formally opt in with the IRS by Jan. 1. They must submit their list of certified organizations by Feb. 15. The New Mexico Public Education Department will lead the effort. Janelle Taylor García, a department spokesperson, said in an email that the agency has contacted education leaders to discuss using the credits to support school-age students. She noted that the department will release more details on the application process once available.

Teachers unions reacted with strong disapproval. John Dyrcz, legislative and political director for the American Federation of Teachers New Mexico, called the move a betrayal of public education. He said the unions expect the program to benefit private and religious schools while public schools lose out. Dyrcz said he was shocked that rural lawmakers supported the initiative. He expressed hope that Gov.-elect Deb Haaland will scrutinize the program closely. A joint statement from AFT New Mexico and the National Education Association of New Mexico described the move as an enduring stain on Lujan Grisham’s legacy on public education.

Republicans in the state viewed the decision favorably. Outgoing state Rep. Rebecca Dow, R-Truth or Consequences, said she was beyond thrilled. She described the program as a lifeline for rural districts with small student populations. Dow stated that the state is capturing $200 million in federal tax credits that cost the New Mexico taxpayer nothing. She expressed appallment that unions would call the move a betrayal. Rep. Raymundo Lara, D-Chamberino, argued in an April opinion piece that the program could be disastrous. He said it moves decision-making away from a system designed to serve all students toward one shaped by individual preference.

Steven F. Cheeseman, president and CEO of the National Catholic Educational Association, said the move makes values-based Catholic education more accessible. He stated that the benefits extend to students in public, private, and religious schools across the state. He called the decision a nonpartisan win for New Mexico children. Michael Coleman, a spokesperson for Lujan Grisham, did not return a request for comment on the unions' criticism. Haaland's spokesperson did not respond to a request for comment Thursday.