That Idaho legislators would attempt passing school choice legislation in 2025 was certain, and their success seemed more likely after key election outcomes in 2024 and a last-minute endorsement from President Donald Trump. Last week, school choice in the form of a tax credit became Idaho law after Gov. Brad Little signed the Parental Choice Tax Credit program.
The tax credit’s popularity among voters remains questionable, as voters haven’t had a choice to weigh in on school choice directly, and 94% of the 1,000 responses to a legislative committee were in opposition.
What the Program Does
Parents of homeschooled and private-schooled children will be able to apply for a $5,000 refundable tax credit each year, and a $7,500 credit for students with disabilities.
The Idaho Tax Commission will roll out the funds on a first-come, first-serve basis. The program is capped at $50 million for the first year but left open to possible increases in the future. The commission will also create a waitlist and is required to report to the state and legislative committees on the program’s progress annually.
Households at more than 300% of the federal poverty level do not qualify for the tax credit.
Once in hand, the funds can be used for private school tuition and fees, as well as textbooks, placement exams, and transportation to testing facilities.
How Idaho Got Here
In a state that often serves as a testing ground for conservative policies, Idaho fell a little behind the trend in pushing for school choice.
In 2022, Arizona took the front line with a voucher program that quickly exceeded its projected costs but led to a flurry of other states following suit with various school choice programs. Whether Arizona’s young program has succeeded remains up for debate. By one metric, it certainly isn’t: The vouchers aren’t fulfilling the key promise of increasing access to education for students of all socioeconomic backgrounds.
ProPublica found that in a ZIP code with a median household income of less than $50,000, only 1 in 100 eligible students is using a voucher. In a ZIP code where the median household income exceeds $170,000, 28 out of 100 students are using funds from the program.
Idaho’s lag in school choice wasn’t for a lack of effort. The core group of legislators who eventually succeeded in passing HB 93 began pitching ideas to education committees back in 2022.
But some Republicans ardently opposed any school choice programs, including former chairwoman Rep. Julie Yamamoto of Caldwell. In May 2024, Yamamoto and three other school choice opponents lost their Republican primary elections.
The American Federation for Children, which operates a Maryland-based PAC, spent $300,000 targeting key opponents like Yamamoto, and backing school choice supporters. By comparison, the biggest spending against school choice was Idaho’s teacher’s union, which mustered $90,000 for the cause last election season.
