South Dakota is the to commit to President Donald Trump’s federal education tax credit program, Republican Gov. Larry Rhoden announced Friday in Sioux Falls.

Under the program, South Dakotans who owe federal income taxes can either send up to $1,700 to the federal government, or they can donate that $1,700 to a government-recognized scholarship granting organization to public, private or homeschool entities in the state. The program starts in 2027.

Nebraska’s Republican Gov. Jim Pillen in September. Republican governors for North Carolina and Tennessee announced their commitment this summer. Oregon, New Mexico and Wisconsin officials said to opt into the program. Some critics nationally have questioned whether there will be proper in place.

Rhoden called the imminent program a “winning situation” for South Dakota taxpayers.

“I’d just as soon give those dollars to a private school than Uncle Sam,” Rhoden said at the announcement, standing in front of a row of students attending the St. Joseph Academy. “I think they know how to spend it a little wiser than the federal government.”

Rhoden added that the federal tax credit will “pair well” with South Dakota’s existing tax credit program, which allows insurance companies to donate up to a total of $5 million to a private school scholarship program for students whose families have low incomes.

The program will further support the state’s , Rhoden said, including homeschooling and microschools popping up throughout the state. Alternative instruction enrollment has , making up about 7% of school-age children in the state.

Sara Hofflander, founder of St. Joseph Academy, said the school is “grateful” for the potential extra funding, though she plans to “approach everything cautiously.”

“Running an independent school obviously requires a heavy commitment from families,” Hoffman said, adding that the extra funding would “lift some of that burden, so we can focus more on the needs of our students.”

Historically, “school choice” efforts in the state have met resistance from the public school industry.

Advocates vehemently fought former Gov. Kristi Noem’s effort to , which would have provided public funding for private education and homeschool options during the last legislative session, calling the failed effort an . Those same advocates referred to the state’s education tax credit program as “.”

But Rob Monson, executive director for the School Administrators of South Dakota, said the program will benefit public and private education. South Dakotans can direct their tax credit dollars to organizations representing public schools in the state. The on not only tuition and fees for private schools, but tutoring, special needs services for students with disabilities, transportation (such as busing), afterschool care and computers.

“That’s a huge win for taxpayers of South Dakota, but also every form of education across the state,” Monson said.

South Dakota Education Secretary Joe Graves said the program will support education innovations and a “robust competitive system.”

Graves told lawmakers on Thursday, while , that “innovation” would be key to improving student outcomes, especially for Native American students and children living in “education deserts.”

“We’re not doing well enough, and we need to do better,” Graves said at Friday’s announcement.

If more students attend private or alternative schooling options, that would mean less state funding for public schools because of decreased student enrollment. Monson told South Dakota Searchlight that state revenues could be impacted by participation in the tax credit program, since it would remove federal tax dollars used to support other programs or go toward states. The federal government would still be obligated to fund some federal education programs, Monson added.

The scholarship funds would be available to families whose household incomes do not exceed 300% of their area’s median gross income. The U.S. Department of Treasury is expected to issue proposed rules detailing the program’s operation.

Graves said he assumes there will be reporting “at some level” of how the funds are spent.

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The poll released by , a school choice advocacy group, surveyed 1,000 adults, including about 200 K-12 parents, exploring their views on education tax credits — state programs giving families the ability to offset the cost of private school tuition by refunding portions of their taxes to them.

Nearly 70 percent of adults surveyed “strongly” or “somewhat” supported education tax credits — with even higher support from 80 percent of K-12 parents. 

“Parents see this as an opportunity to have a little bit more authority over their kids’ education…and coming out of the pandemic, obviously, that support has skyrocketed,” said Matthew Frendewey, vice president of strategy at Yes. Every Kid.

But education tax credits are controversial, with supporters, often Republicans, backing the program’s boon for family empowerment; and opponents, often Democrats, arguing the program undermines public education by rerouting state funding to private schools.

Similar programs include education savings accounts that continue to face partisan divides for how parents have used the funds — raising eyebrows on purchases such as kayaks and trampolines, cowboy roping lessons and tickets to entertainment venues like SeaWorld.

Awareness of education tax credits was spurred after Oklahoma passed the since the first program began in 1987 — reserving families private school funding that caps at $150 million in 2024, and increases to $200 million in 2025 and $250 million in 2026.

Other states with education tax credit programs include Alabama, Illinois, Iowa, Minnesota, Ohio and South Carolina.

Lily Landry, a senior legislative analyst at Yes. Every Kid., said education tax credit programs give families the flexibility to choose the best learning option without government oversight.

“There’s not as much checks and balances for families to spend their money,” said Landry. “We’re putting trust in families that know what is best for their child.”

Here are three things to know about education tax credits:

1. While most adults support education tax credits, a majority are unaware if any states offer them.

Despite strong support for education tax credit programs, more than 70 percent of adults are unaware if any states offer them.

Landry said the general lack of awareness of school choice programs lends itself to the uncertainty most adults surveyed had.

“A big problem that we see is that when legislation is written they don’t outline how whoever is administering or leading the program has to communicate with parents and families about their options,” Landry said.

The more aware parents are of education tax credits the more likely they approve of the program, Frendewey said.

“When you’re dominated by the traditional neighborhood public school, a lack of awareness exists around what options are out there,” Frendewey said. “But when you get the awareness, there’s been tremendous support.”

2. Poor adults have the lowest support for education tax credits and the lowest belief that they would improve the overall education system.

Less than 60 percent of poor adults support education tax credits and about 50 percent believe they will improve the education system.

Frendewey pointed to the lack of “exposure” to how education tax credits work as an explanation for the survey findings.

“Most families who are middle to lower income probably don’t feel that structure benefits them,” Frendewey said. “Just the name of it alone probably makes a lot of families feel like that’s not something they’d qualify for.”

“A tax credit requires you to pay out of pocket first and then get refunded, so that’s really difficult for middle and low income families,” Frendewey added.

The largest support comes from not only K-12 parents but also 75 percent of Republicans and 73 percent of upper middle class or higher adults.

Families from higher income households are typically more aware of school choice options, Landry added. 

“The information might not be getting to some of the communities that need it or might be able to utilize it,” Landry said.

3. Parents who support education tax credits also favor education savings accounts, public school open enrollment and part-time public school access.

Among the 80 percent of K-12 parents in support of education tax credits, 72 percent support education savings accounts, 70 percent support public school open enrollment and 72 percent support part-time public school access.

“Even if parents don’t want to exercise choice for themselves, they see a value in creating more options for the overall ecosystem,” Frendewey said, adding this is in part due to how the pandemic empowered families to create unique ways to educate their kids.

“What it exposed to parents was that pluralism is good,” Frendewey said. “The opportunity to have a more diverse education marketplace is an overall benefit to all kids whether or not you’re going to choose your local public school, private school or homeschool co-op.”

Disclosure: Yes. Every Kid. operates as part of the wider Stand Together Trust network. Stand Together Trust provides financial support to The 74.