Minnesota could miss out on a significant source of education funding because the state has chosen not to participate in a new federal tax-credit program. 

With the 2026 gubernatorial election approaching, questions are also being raised about where Sen. Amy Klobuchar, D-Minn., who is running for governor, stands on the issue.

Democratic Gov. Tim Walz has already stated that Minnesota will not join the program.

The federal program allows taxpayers to receive a tax credit for donations to approved scholarship-granting organizations. These nonprofit groups can help cover private school tuition for eligible K–12 students, as well as certain public school expenses, including tutoring, books, and school supplies.

The program is scheduled to become available in 2027, but states must formally opt in before organizations within their borders can qualify. 

According to the America First Policy Institute, Minnesota could generate an estimated $810 million for students over three years if it participates, assuming relatively modest taxpayer participation.