SENATE JOINT MEMORIAL 4

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

James G. Townsend and Larry R. Scott and Rex Wilson

and Jay C. Block

 

 

 

 

A JOINT MEMORIAL

REQUESTING THE GOVERNOR TO SUBMIT AN ADVANCE ELECTION TO PARTICIPATE IN THE FEDERAL EDUCATION FREEDOM TAX CREDIT PROGRAM.

 

     WHEREAS, on July 4, 2025, the allowance of credit for contributions of individuals to scholarship granting organizations, also known as the federal education freedom tax credit, was enacted pursuant to 26 U.S.C. Section 25F, as added by Section 1201 of Public Law 118–234, creating the nation's first federal scholarship tax credit program; and

     WHEREAS, starting in 2027, taxpayers can claim up to one thousand seven hundred dollars ($1,700) in dollar-for-dollar tax credits for donations to nonprofit scholarship granting organizations that award scholarships to kindergarten through twelfth grade students, with a focus on supporting low-income families and students with special needs; and

     WHEREAS, the federal education freedom tax credit provides for the flexible use of scholarships covering expenses for tuition, fees, academic tutoring, special needs services in the case of a special needs beneficiary, books, supplies and other equipment that are incurred in connection with the enrollment or attendance of the designated beneficiary of the trust as an elementary or secondary school student at a public, private or religious school; and

     WHEREAS, this historic initiative can expand educational freedom nationwide at no cost to state budgets and without new regulatory burdens, empowering families in need to access tailored educational opportunities that address barriers to equity and success; however, scholarship granting organizations can only receive donations in states that formally opt into the federal education freedom tax credit program; and

     WHEREAS, if states do not elect to participate in the program, donors who wish to claim the federal tax credit may direct their charitable contributions to scholarship granting organizations in other participating states instead, and as a result, students and families in nonparticipating states, particularly those from underserved communities, may miss out on new educational opportunities funded by private donations; and

     WHEREAS, the decision to participate in the federal education freedom tax credit program rests entirely with the governor of each state, requiring no legislative action and offering a straightforward path to enhance support for vulnerable families; and

     WHEREAS, governors across the political spectrum, including in neighboring states Texas and Colorado, recognize the federal education freedom tax credit as a bipartisan path to educational equity, offering critical support for students who have historically faced barriers to opportunity; and

     WHEREAS, by opting into this program, New Mexico would affirm its commitment to prioritizing families in need, signaling to scholarship granting organizations, entrepreneurs and charitable donors that the state is dedicated to expanding educational opportunities for all children, fostering economic prosperity and closing achievement gaps without diverting funds from public schools; and

     WHEREAS, delaying this decision may cause charitable contributions to be sent to other states that act more quickly, where public support for participation in the tax credit program is strong and bipartisan; and

     WHEREAS, recent national polls, including those from nonpartisan organizations like yougov and the American federation for children, show that approximately seventy percent of registered voters nationwide, including majorities of Democrats, Republicans and Independents, want their state governors to opt into the federal education freedom tax credit program, with a plurality calling for immediate action to benefit families; and

     WHEREAS, among poll respondents with school-age children at home, nearly eighty percent stated they are likely to apply for a scholarship if given the chance, highlighting the program's potential to directly aid working families and promote inclusive access to quality education;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that, in consideration of the significant public importance of supporting the availability of educational scholarships in New Mexico, especially for low-income and special needs students, the simplicity of the opt-in process for the federal education freedom tax credit program and the once-in-a-generation opportunity this program presents to advance equity and family support without impacting state resources, the governor be requested to submit an advance election to participate in the program as soon as possible; and

     BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the governor.

- 4 -