Governor Michelle Lujan Grisham announced on November 4 that she will have New Mexico join the Federal Scholarship Tax Credit (FSTC), the Office of the Governor said in its website. The move will create new funding opportunities for public schools to support literacy and math initiatives, after school programs, computer resources, and more.
Lujan Grisham said participating in the FSTC will allow taxpayers to direct some of their federal income taxes to the state to support students, according to the Office of the Governor.
It said that starting in 2027, taxpayers can claim an annual federal income tax credit of up to $1,700, or $3.400 for joint filers. They must make qualifying cash donations to approved nonprofit scholarship-granting organizations (SGOs) to receive the credit.
Students attending public and private schools can use the scholarships to access a range of educational support services. These include academic tutoring, special education services, before- and after-school programs, technology, books, supplies, and fees for additional public school programs, the Office of the Governor announced.
What's Next
The New Mexico Public Education Department will develop a certification process for SGOs in the coming weeks, the Office of the Governor said. Once the department releases the guidelines, eligible organizations can apply to participate in the program.
Why It Matters
The initiative will give students access to scholarships that help families cover essential educational expenses and support their children’s learning.
