The §25F rules Democratic governors were waiting for are out. Hochul, Pritzker, Sherrill and Healey are still reviewing

For most of 2026, the standard answer from undecided Democratic governors was that they could not decide on the Education Freedom Tax Credit until Treasury explained how it would work. Those rules came out on October 1 and were published in the Federal Register on October 2. The first round of responses, given to reporters on Thursday, shows the waiting is not over yet: every governor's office that answered said it is reviewing the regulations, and none announced a decision.

New York. Gov. Kathy Hochul is the closest to a yes. She said in May that New York would take part unless the rules contained "poison pills," but the state has never filed the advance election that would put it on the IRS list. Chalkbeat reported that she "declined Thursday to make it official." Her spokesperson, Jonah Allon, told Jewish Insider: "If properly implemented, and structured so all students can benefit, the federal scholarship tax credit can expand opportunity without diverting funding from public schools, state or local budgets. The Administration is carefully reviewing the proposed regulations to ensure implementation would achieve these goals." Our New York page keeps the state as committed, not opted in.

Illinois. Gov. JB Pritzker had pointed to the missing federal rules as a reason not to act. His office said Thursday it "is currently reviewing the newly released guidance" and "will carefully evaluate the proposed regulations and make a decision grounded in what best supports working families, students, and our public schools" (statement published by Capitol Fax). Background on the Illinois debate is on our Illinois page.

New Jersey. A spokesperson for Gov. Mikie Sherrill, who has stayed noncommittal since May, said: "As we carefully review this federal guidance, we are examining who the program would serve, which opportunities are available, and how it could best benefit public school students."

Massachusetts. Gov. Maura Healey, whose administration said in June it was waiting on Treasury, was asked about the rules Thursday. "What I understand is that Treasury has released temporary regulations. I don't know what that means," she said, according to State House News Service. "We'll have to see what these regulations say, and also to get more clarity about what they mean by temporary." The short answer: the temporary regulations cover the launch mechanics (state elections, SGO lists, IRS registration, donor receipts) and take effect without a comment period, applying from September 1, 2026, while the longer proposed rule is open for comment until December 1.

Others. Washington, D.C.'s Office of the State Superintendent of Education said it is "reviewing the temporary regulations and proposed rulemaking." Jewish Insider reported that the offices of Pennsylvania Gov. Josh Shapiro and Maryland Gov. Wes Moore did not respond to requests for comment. By Chalkbeat's count, 18 Democratic governors besides Hochul have yet to make a decision. Colorado's Jared Polis is still the only sitting Democratic governor to have opted a state in. Virginia, Kansas, Kentucky and North Carolina also have Democratic governors and are on the IRS list, but they got there through a predecessor's election or a legislative veto override.

What the rules answer for them. Two concerns came up again and again in these governors' earlier statements: whether public school students can benefit, and whether a state could shape the program. On the first, Treasury says plainly that public school students can receive scholarships, and the expense list in the law (borrowed from Coverdell education savings accounts) includes tutoring and special needs services; Treasury's detailed guidance on which expenses qualify is still to come. On the second, the answer is no: a participating state may not impose rules more restrictive than §25F and must list every qualifying SGO located in the state that asks. Supporters, including the Teach Coalition and Agudath Israel of America, argue the rules remove the last reason to wait. The American Federation of Teachers and the National Education Association are urging governors to stay out.

The clock. To take part in 2027, a governor makes the advance election (IRS Form 15714) by January 1, 2027, and the state then submits its SGO list to the IRS by February 15, 2027 (full calendar). A state that sits out does not stop its residents from claiming the credit: they can still give to SGOs serving students in any of the 30 participating states. What a state gives up is scholarship money for its own students. For the state-by-state picture, see the participation map.