Virginia expanded school vouchers through a new federal program. Here’s what that means for public schools

As Virginia expands private school vouchers through a federal tax credit, educators are raising questions about access, accountability, and who benefits.

In Virginia, public schools remain where most students learn and where education dollars are concentrated. They anchor neighborhoods, employ local residents, and shape which resources are available to kids day to day.

That context is why Virginia’s decision to opt into a new federal school voucher program is drawing close attention from educators and critics—even as supporters say the move expands options for families.

But a question remains: “Which families is this program designed to help?”

Earlier this year, former Gov. Glenn Youngkin announced that Virginia would participate in the federal Education Freedom Tax Credit, becoming the first state in the country to formally opt into the program. While Virginia has had limited school choice initiatives before, educators say this decision marks a significant expansion that could have statewide consequences for public school funding.

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Educators, including the Virginia Education Association (VEA), say understanding who stands to benefit requires looking beyond the language of “choice” to how the program actually works in practice.

What is a school voucher?

At its core, a school voucher is a way for public money to help pay for private education instead of public schools. Voucher programs can look different from state to state. Some involve direct payments to families through Education Savings Accounts (ESA). Others, like Virginia’s new federal program, work indirectly through tax credits.

READ MORE: Opinion: Just say no to private school vouchers

The common thread is that public dollars, whether through state budgets or tax revenue, are used to support private school tuition.

How the federal government describes the new program

In a joint fact sheet recently released, the US Department of Education and US Department of the Treasury call the Education Freedom Tax Credit “the largest national expansion of education freedom in history,” framing it as a way to give families “more affordable education options” through federal tax credits for donations to scholarships organizations.

Starting Jan. 1, 2027, individuals can receive a tax credit of up to $1,700 for donations to Scholarship Granting Organizations. These organizations provide scholarships that can be used for a range of education-related expenses, including private tuition and other educational support.

The fact sheet outlines how the program is designed to function, but it does not address how expanded voucher-style funding could affect public school budgets, access disparities, or accountability requirements—concerns raised by educators and lawmakers in Virginia.

Who educators say is least likely to benefit from new program

The VEA has warned that public schools across the state could lose between $222 million and $956 million a year starting in 2027, depending on participation levels, as students move from public to private options under the federal program. The association has also criticized Virginia’s decision to opt in before federal guidance is finalized.

“This is an outrageous, last-minute political stunt by an outgoing governor who has repeatedly pursued policies that undermine public education, and who is now attempting to jam Virginia into a federal voucher scheme before the rules are even written,” Carol Bauer, President of the VEA said in a press release.

Referring to the organization’s analysis report, Bauer said that the funding losses could lead to larger class sizes, fewer educators, and fewer course offerings. Critics also worry that under voucher programs, public dollars are redirected to private schools that are not held to the same accountability standards as public schools.

Those concerns are especially pronounced in rural and low-income communities, where families often have fewer school options to begin with.

According to a report from the Center for American Progress (CAP), nearly one in five public school students nationwide attends a rural school, but access to private schools in those areas is limited. And based on findings from Brookings, a nonpartisan research group, only 34% of rural families live within five miles of a private school, compared with 92% of urban families. Because private schools typically do not provide transportation, the report notes that voucher programs “do not provide ‘choice’ for the vast majority of rural families; instead, they divert funding from their public schools, leaving rural public school students with fewer resources while funding the private education of others.”

Advocates also point to racial equity concerns tied to voucher programs. In a separate analysis examining the history of private school vouchers, CAP found that early voucher efforts in states including Virginia emerged as a response to school desegregation, with programs designed to support white families leaving integrated public schools. While modern voucher programs are supposed to be framed differently, CAP researchers argue that without strong accountability and civil rights protections, voucher systems can still contribute to racial and economic segregation.

As program unfolds, calls for accountability grow

Now that Virginia has formally opted into the Educational Freedom Tax Credit, the impact of the program will unfold over time—particulary once the credit takes effect in 2027.

But until then, some lawmakers say the debate is no longer just about whether or not school choice should exist, but about which rules should be applied when public money is involved.

This is why Del. Dan I. Helmer (D-Loudoun, Prince William County, Fauquier, Fairfax, Rappahannock counties, and Manassas and Manassas Park cities) introduced House Bill 359 as a response to the program. The bill does not undo the state’s participation or create new voucher pathways. Instead, it focuses on accountability and guardrails for how public dollars are used when they support private education.

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