Ferguson is waiting for final §25F rules. Treasury says those may not come until 2028, and Washington's 2027 deadline is January 1

Washington Gov. Bob Ferguson still has not said whether the state will join the federal Education Freedom Tax Credit (§25F) for 2027, and the condition his office set for deciding now runs into Treasury's own calendar. In September, Ferguson's communications director, Brionna Aho, told the Washington State Standard that the governor would not make a decision until the final rules are available. What Treasury released on October 1 were proposed regulations and temporary regulations, not final ones. The same day, Kevin Salinger, Treasury's Deputy Assistant Secretary for Tax Policy, said final regulations probably won't be in place until 2028, The 74 reported.

The deadline is already set, and it is in the binding part. The rules that govern what a state does are temporary regulations, which take effect without a comment period and apply from September 1, 2026. Under § 1.25F-5T(c)(3)(i)(B)(1), a state that wants to participate in 2027 "must submit an advance election on Form 15714 on or before January 1, 2027," and then perfect it by sending its SGO list by February 15, 2027. Each election covers one calendar year. So a decision that waits for final regulations is, in practice, a decision to sit out 2027, and on Salinger's timeline possibly 2028 as well. The proposed rules also say states, donors and SGOs "may rely on these proposed regulations" for contributions made on or after January 1, 2027. The §25F calendar has every date.

After the rules: no answer. On October 6, The Center Square reported that it asked Ferguson's office when the governor would decide, now that Treasury's guidance is out, and received no response. Some outlets ran that story under a headline saying Washington "opts out." The article itself reports no decision, and we found no announcement from the governor. As of today, Washington is undecided, which is how our Washington page lists it.

The Democratic case for opting in. On September 15, the Washington Policy Center hosted a virtual press call with Arne Duncan, U.S. Secretary of Education under President Obama, and Jorge Elorza, CEO of Democrats for Education Reform. Duncan called participation "not just an educational opportunity" but a "moral obligation," the State Standard reported. "It doesn't replace a single dollar. It's additional. It's additive," he said. "If I have a choice of sending money to Washington, D.C. ... versus keeping that money in my state and funding kids who are struggling, I can't think of an easier choice to make." Elorza's organization estimated donations could bring Washington students more than $700 million. Asked how much control a state keeps after opting in, Elorza told the Lynnwood Times its role is "ministerial." The temporary rules bear that out: a participating state may not require SGOs "to operate in a manner that is more restrictive than" §25F, such as by limiting which schools recipients attend or which expenses scholarships cover.

The case against. The Washington Education Association opposes the program. "With public schools, we have very transparent accountability standards that ensure high quality instruction," WEA vice president Toni Lindquist told the State Standard. Superintendent of Public Instruction Chris Reykdal wrote to the state's congressional delegation in February that the program "needs a substantial rewrite." Rep. Michael Keaton, R-Puyallup, the prime sponsor of House Joint Memorial 4013 asking Ferguson to opt in, said in September he had been trying for weeks to meet the governor. "It's not a voucher, it's free federal dollars for our state's education," Keaton said.

Where that leaves Washington's neighbors. Idaho is in for 2027. Oregon Gov. Tina Kotek declined in June, and her office said this month she has no plans to change her position. Several other Democratic governors are reviewing the rules on the same January 1 clock.

For Washington donors and nonprofits. Washington residents can claim the credit in 2027 whatever Ferguson decides, by giving to an SGO in a participating state. What they cannot do without the state in is fund Washington students: under Treasury's residence rule, an SGO's scholarships go only to students who live in a state that listed it, so a Washington child cannot receive a §25F scholarship from an SGO listed only in Idaho. That is how an opt-out moves the money out of state. Groups preparing now, in case Ferguson elects in before January 1, can use the free SGO Builder, and the opt-in explainer covers how the election works.