School Choice Could Curb the Blue-State Exodus — If Democrats Can Embrace It

D emocrats in deep-blue states will soon have an opportunity to demonstrate bipartisanship in a way that helps their own states materially while winning back support the party lost in November. The Educational Choice for All Children Act (ECCA), first introduced in 2023, has been stymied by Democratic opposition, but deserves fresh consideration by the new Congress. If enacted and depending on the version that is introduced, it would provide $5 billion or $10 billion in federal tax credits to private scholarship-granting organizations in all 50 states through 2028. Any contribution to a state-level scholarship organization, up to 10 percent of the donor’s adjusted gross income, could translate into credit against their federal taxes.

These scholarship organizations could then award grants to families to help defray educational expenses in ways of their choosing. Families with gross income below 300 percent of median family income in their region would be eligible to receive scholarships. (In 2024, median family income ranged from $71,000 in Mississippi to $127,000 in Massachusetts.) Approved expenses include school tuition, curricula and materials, books, online resources, tutoring, standardized and college entrance exam fees, dual-enrollment costs for high school students, and educational therapies for students with special needs.

In the 33 states that have publicly funded school-choice programs, the funds provided by ECCA could be stacked on top of those state-provided dollars to enhance eligible families’ ability to exercise school choice. Estimates suggest up to 1 million students stand to benefit from the school enhancements ECCA, if enacted, could provide.

Of course, part of the story here is that some of the biggest blue states are opting not to join the recent expansion of state-level school-choice programs, while red states in the South and Southwest have been expanding access. At the same time, New York, California, and Illinois, among others, are losing population and families with school-age children to southern states. That migration is happening because of many quality-of-life factors, including the cost of living, tax levels, public safety — and yes, local school concerns.

According to state education data compiled by the Empire Center, enrollment in New York State’s public schools is 520,000 students lower than it was in 2000. In New York City alone, public school enrollment is down by 188,000 in the same period. Enrollment in New York State’s private school sector has also declined, particularly in Catholic schools, where enrollment is in free fall. The availability of scholarship funds through ECCA might help save the remaining Catholic schools and even encourage some new schools to found.

Other families in New York might also benefit from ECCA. Jewish schools, for example, now have the highest enrollment of any subgroup of private schools in the state — an expansion driven by the growth of Haredi communities. But the boys’ high schools in these communities are under scrutiny by the State Board of Regents, which claims they fail to meet curricular standards in secular subjects. The issue is currently tied up in the courts, but ECCA’s design could offer a partial solution.

With scholarship funds, families could purchase tutoring, curriculum, and other online materials to supplement their sons’ secular education outside their religious schools — while still choosing providers that align with their values and way of life. Religious schools could also use scholarship dollars, passed on from parents, to acquire these educational resources directly. Some schools worry that accepting such funds might invite government oversight, but ECCA explicitly avoids public funding. Moreover, its text is clear: Nothing in the law “shall be construed to permit, allow, encourage, or authorize any Federal, State, or local government entity, or officer or employee thereof, to mandate, direct, or control any aspect of any private or religious elementary or secondary education institution.”

There’s also the case of homeschoolers, whose numbers have almost doubled in New York in recent years. These communities often rely on online curricula, and the ECCA would allow them to purchase curricula and materials with scholarship dollars.

New York, like other states experiencing population decline, is losing electoral influence to states that attract residents by offering a better quality of life. In a perfect world, New York would have embraced school choice years ago, supporting communities and preventing the closure of private schools. But one-party control in Albany has made statewide, programmatic school choice politically impossible. That same one-party control has also seen the state retreat from its previous support of public charter schools, the one bright spot on the state’s educational landscape in the last 20 years.

While the state’s own legislators continue to stand by idly while families leave in droves, its members of Congress, Democratic and Republican alike, have an opportunity to accept the gift that the new Washington majority is offering them: a way to reduce educational expenses for struggling families and to begin to once again make New York State a reasonable place to raise a family.

There will be opposition to the ECCA from the usual corners, particularly teachers’ unions. But the legislation’s design mutes some of the most tiring criticisms of school choice; it takes no money from public schools, and it incentivizes philanthropists to fund choice programs while earning credit toward their federal tax bills. It also allows eligible families who choose to stay in public schools to purchase supplemental services. That’s a win for all, if only New York’s members of Congress and other Democrats will see it.