SANTA FE — State Rep. Rebecca Dow is urging Gov. Michelle Lujan Grisham to opt New Mexico into a federal education tax credit program, saying the move would expand school choice and direct more resources to families.

Dow said the proposed Education Freedom Credit offers “a timely opportunity to deliver meaningful, student-centered support to families across the state.”

A report from the America First Policy Institute estimates New Mexico could miss out on nearly $200 million over three years if the state does not participate in the program.

The federal Education Freedom Credit is designed to provide tax incentives for donations that fund scholarships and other education options, including private schooling.

Supporters say the program would give families more flexibility in choosing schools while keeping federal dollars in the state of New Mexico.

“This is not a partisan issue,” said Vince Torres, executive director of the America First Policy Institute in New Mexico. “Recent polling shows broad, bipartisan support for the Education Freedom Tax Credit program, and even President Barack Obama’s former education secretary has called it a ‘no brainer.’ With hundreds of millions of dollars at stake, we urge the governor to opt New Mexico in so those funds stay here and benefit New Mexico students, rather than flowing to other states.”

Public education advocates and teachers’ unions have long opposed school choice tax credit programs, saying they can reduce funding stability for public school systems and lack sufficient accountability.

The debate reflects a broader national divide over school choice policies, which have gained support among Republican-led states but faced resistance from many Democratic leaders.

Grisham, a Democrat, has not publicly committed to adopting the program. Earlier reporting indicated she was among several Democratic governors who initially declined to participate, though more recent developments suggest some governors are reconsidering their positions as the policy gains traction, especially since millions of dollars are at stake. 

It remains unclear whether New Mexico will opt into the program before federal deadlines that could determine whether the state receives the projected funding.