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Klobuchar silent on joining federal education tax credit, risking millions for Minnesota students

Senator Amy Klobuchar has not answered whether she would enroll Minnesota in a new federal tax credit that could bring hundreds of millions to students, leaving the state likely to miss the funding.

A federal education tax credit, established by the One Big Beautiful Bill, allows donors to receive a dollar-for-dollar reduction on their federal taxes when they give to scholarship-granting organizations, with the credit matching contributions up to $3,400 for joint filers. More than 30 states have opted in, but Minnesota has not, because Gov. Tim Walz has said the state will never join. Analysts estimate the program could generate $810 million for Minnesota students over three years if adopted.

Democratic candidate Amy Klobuchar, who is running to succeed Walz, has not responded to repeated inquiries about her stance. In contrast, Republican House Speaker Lisa Demuth is promoting enrollment as a key part of her education plan, and other Democratic governors such as Kathy Hochul have already joined the program.

Why it matters

Minnesota could lose hundreds of millions for student support if the state remains out of the federal tax credit program.

In this story

education tax creditscholarship granting organizationfederal tax reductionstudent fundingstate enrollmentOne Big Beautiful BillMinnesota education policy
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