OKLAHOMA CITY 鈥� An Oklahoma Senate plan to has drawn mixed reactions in the week since Republican leaders unveiled it.

Groups representing active and retired educators, along with legislative Democrats, have opposed Senate Republicans鈥� idea to redirect $254 million that otherwise would supplement the Teachers鈥� Retirement System. GOP leaders said the pension system is in a strong position now that it鈥檚 80% funded, and those extra funds could benefit urgent needs in public schools.

The plan wouldn鈥檛 take any money out of the Teachers鈥� Retirement System, and no retirees鈥� benefits would be reduced. It would place a $200 million limit on a yearly pension subsidy, called an apportionment, that has helped build up the retirement system over the past 23 years on top of regular state and employee contributions.

Doing so would free up $254 million 鈥� in a tight budget year 鈥� for a $2,500 teacher pay raise, extra school funding, expanded private school tax credits and more, Senate leaders said.

The thought of repurposing retirement funds, though, has drawn scrutiny from the state鈥檚 largest teacher union and a group representing retired educators.

Oklahoma Education Association President Cari Elledge equated the plan to mortgaging a teacher鈥檚 future for a salary increase today.

鈥淲e shouldn鈥檛 be having to be the ones who are funding our own raises,鈥� she said.

Using money intended to benefit public school teachers to instead bolster private school tax credits also would be 鈥渧ery troubling,鈥� she said. The Senate plan would put $25 million of the pension apportionment funds into the state budget for the Parental Choice Tax Credit, which helps families pay for private schooling.

Retirement funds shouldn鈥檛 be used to finance other budget priorities, especially when retirees haven鈥檛 had a cost-of-living increase to their benefits in six years, the .

鈥淎n 80% funded ratio is meaningful progress 鈥� but it is not full funding,鈥� the organization wrote in a public statement. 鈥淩edirecting retirement dollars now risks reversing years of hard-earned stability.鈥�

Senate leaders didn鈥檛 rule out the possibility of a cost-of-living increase if their plan succeeds. They would need support from the House for the proposal to meaningfully advance.

House Speaker Kyle Hilbert, R-Bristow, stopped short of endorsing or rejecting the Senate idea. He said lawmakers, though, will have to someday decide what to do with the pension subsidy as the Teachers鈥� Retirement System inches closer to being 100% funded.

鈥淎t some point the subsidization of the pension systems, the TRS system, will need to go away,鈥� Hilbert told reporters Thursday. 鈥淚t鈥檚 just a question of is that (happening in) 2026, is that 2030, is that 2034? I think that鈥檚 the question we have to wrap our heads around as we make determinations on what is fully funded and when does that subsidy need to go away. It was never intended to be there forever.鈥�

Much of the criticism for the funding plan stems from a misunderstanding, said Senate President Pro Tem Lonnie Paxton, R-Tuttle. He said constituents who contacted Senate Republicans believed lawmakers planned to deduct from their pension paychecks.

鈥淢y wife is a retired teacher. I don鈥檛 get to go home at night if I鈥檓 trying to draw from her pension system. That鈥檚 not what we鈥檙e doing,鈥� Paxton said.

Senate Minority Leader Julia Kirt, D-Oklahoma City, said she heard similar fears from constituents. Her office has been 鈥渇looded with calls鈥� since the Republicans鈥� announcement.

Feedback on the proposal has been full of frustration, said House Minority Leader Cyndi Munson, D-Oklahoma City.

鈥淧itting retired teachers against active teachers is really not a good plan,鈥� Munson said. 鈥淚t鈥檚 not a popular idea.鈥�

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Oklahoma Voice maintains editorial independence. Contact Editor Janelle Stecklein for questions: info@oklahomavoice.com.

Gov. Jared Polis plans to opt Colorado into a federal tax-credit scholarship program, opening the door to private school choice in a Democratic state where lawmakers and voters have rejected previous proposals.

Conservatives, children鈥檚 advocates, and supporters of school choice praised the decision for its possibility to raise money for all students鈥� education. Meanwhile, a coalition of public school advocates sent a letter to Polis in December asking him to reconsider.

The voucher-like program, part of President Donald Trump鈥檚 鈥渂ig, beautiful鈥� budget bill, has the potential to generate billions of dollars for private school tuition and other educational expenses, such as tutoring, but governors have to decide whether to participate.

Polis appears to be the . North Carolina Gov. Josh Stein did so in August under pressure from state Republican lawmakers who have dramatically expanded the state鈥檚 voucher system. Polis also is the second governor to opt in from a state where voters rejected a school choice measure at the ballot. Nebraska Gov. Jim Pillen, a Republican, , setting the stage for Nebraska鈥檚 first private school choice program after voters there overturned voucher legislation in 2024.

School choice supporters had hoped the federal program would expand educational opportunities in states where politics made it difficult or impossible to pass voucher legislation. Polis, meanwhile, said he saw other potential benefits.

Polis spokesperson Shelby Wieman said in a Dec. 5 statement that the governor would not have voted for the budget bill, but he is not interested in leaving hundreds of millions in federal money on the table that could provide additional funding for after-school programming, summer school, scholarships, and academic tutoring.

鈥淭his tax credit creates an immense opportunity for Coloradans to support students in our state, but only if we opt in,鈥� she said. 鈥淗e welcomes the opportunity to work with school districts and other education stakeholders to help ensure this credit can benefit the greatest number of students across our state with evidence-based programs that supplement school days. He encourages the administration to ensure these tax credits lead to improved student outcomes.鈥�

The tax-credit program allows taxpayers to reduce their tax liability if they donate to eligible scholarship-granting organizations, which then pay for students鈥� educational expenses.

The law allows donations to benefit public and private school students alike, but how feasible it might be to harness donations for public school students will depend in part on rules that the Treasury Department has yet to issue.

that Polis plans to opt Colorado into the program. He expressed openness to the idea last summer and earlier in his career. Polis said in a statement that he doesn鈥檛 believe vouchers are a good use of public funds and that this tax credit is not a voucher.

States officially opt in by presenting a list of eligible scholarship-granting organizations to the Treasury Department, a step that must wait until rules are finalized next year.

Polis鈥� decision doesn鈥檛 necessarily mean Colorado will participate in the tax-credit program over the long term. Polis is term-limited, and the winner of the governor鈥檚 race next year could make a different decision.

Supporters of Polis鈥� decision agreed that the tax credits present an opportunity for the state to raise millions for students, including to support them in out-of-school opportunities and to pay for transportation and school supplies. Advocates say the tax-credit scholarship program helps students in underperforming schools attend other school options.

Tony Lewis, executive director of the Donnell-Kay Foundation, which works on education policy, said he hopes the tax credit rules allow scholarship-granting organizations the ability to pay for a wide range of activities, such as sports, after-school programs, theater classes, and summer camps. (The Donnell-Kay Foundation also has provided funding to Chalkbeat. Read more about our supporters and our ethics policy .)

鈥淚f we pass up this opportunity to opt in now, we close any possibility of doing good work for public school kids,鈥� he said. 鈥淲hy not keep your options open?鈥�

The Colorado Children鈥檚 Campaign, an advocacy organization, also expressed optimism about the potential to benefit public school students.

And Ready Colorado Executive Director Brenda Dickhoner said the decision means more opportunities for kids, especially those wanting to participate in enrichment programs. The conservative organization focuses on school choice and education reform.

鈥淚t鈥檚 a way for us to solve this problem of closing this opportunity gap, and making it more equitable for kids to access after school enrichment, whether it鈥檚 band or sports or any type of tutoring,鈥� she said in an interview.

The program doesn鈥檛 require state investment. Instead, it allows states to decide whether taxpayers can donate funds to scholarship-granting organizations and receive a dollar-for-dollar federal tax credit. Individual taxpayers can claim a credit of up to $1,700 starting in 2027.

Those organizations would give the money to parents to pay for education expenses, such as a students鈥� private school tuition, books, transportation, and uniforms. Families earning up to 300% of area median income would qualify. That threshold includes well-off families in expensive urban areas but might exclude middle-class families in some rural communities.

, which would have enshrined the right to school choice in the state鈥檚 Constitution. In 2021, they .

Polis reiterated his decision to opt in despite pleas from a that delivered a letter to Polis saying the state should not participate.

The letter said the state should focus on providing more resources to schools and respect voters鈥� wishes to keep vouchers out of the state.

The group added that the state can and must do better when it comes to public education. 鈥淏ut publicly funded school vouchers are not the way to achieve this,鈥� the letter says.

The letter says studies have shown vouchers provide mixed results in improving student achievement. It also says the program lacks public accountability and allows discrimination against children with disabilities or who identify as LGBTQ+.

鈥淯nlike the private or religious schools that vouchers support, our public schools are obligated to teach all students, holding fast to the American ideal of public education as a springboard to success and as necessary to a well-functioning democracy,鈥� the letter says.

The list of organizations calling on Polis to reject the plan include the Colorado Education Association, Colorado Fiscal Institute, Colorado PTA, Movimiento Poder, and The Bell Policy Center.

Chalkbeat is a nonprofit news site covering educational change in public schools. This story was originally published by Chalkbeat on Dec. 5, 2025. Sign up for their newsletters at .

Supporters want the program to be uncomplicated, both for nonprofits granting scholarships and the private schools participating. Others want to ensure that students who remain in public schools can benefit from the program, while critics oppose the basic concept 鈥� a dollar-for-dollar tax credit for those who donate up to $1,700 annually to a scholarship-granting organization.

They want the Trump administration to focus instead on supporting public schools.

 鈥淭he federal government should invest in strong, inclusive, well-resourced public schools 鈥� not incentives that drain support and weaken safeguards,鈥� one Tennessee man wrote in a letter to the Treasury Department and the IRS, among the more than 2,100 comments on the new law submitted by the Dec. 26 deadline. 

With the tax credit already on the books, the Federal Scholarship Tax Credit Coalition, which represents more than 200 school choice advocates, private schools and scholarship organizations, wants the administration to keep the program simple. 

The organization wants officials to make it 鈥渁s easy as possible鈥� for scholarship-granting organizations to participate, for taxpayers to contribute and to 鈥渕aximize鈥� the number of students who will benefit.

Their letter calls for the administration to clear up some potential confusion.They want officials, for example, to keep recordkeeping requirements for participating nonprofits from being 鈥渙verly burdensome or onerous.鈥� 

John Schilling, a consultant who lobbied in favor of the program, said he hopes Treasury officials will release rules by summer. 

鈥榁ery well prepared鈥�

President Donald Trump signed the new program into law in July as part of a large tax cut and spending package. Because it鈥檚 hard to predict how many taxpayers will donate and claim the credit, it鈥檚 not yet clear how much the program will cost the government. Kristin Blagg, a principal research associate at the Urban Institute, a left-leaning think tank, that after an initial 鈥渞amp-up period,鈥� the program could generate between $2.7 billion to $6.1 billion annually.

Scholarship groups could begin awarding funds to students in early 2027, but it might take until that fall for them to raise enough money.

鈥淭he ones that are serious about doing this are going to be very well prepared,鈥� Schilling said. 鈥淚’m hopeful that they will line up a lot of donors who will give in the first quarter of 2027.鈥�

So far, of Colorado, Iowa, Louisiana, Nebraska, North Carolina, South Dakota, Tennessee and Texas have said they intend to opt in, while those in New Mexico and Wisconsin have announced that they won鈥檛. But Schilling said he thinks that鈥檚 a mistake聽because donors could just send their money to a scholarship organization in another state.聽聽

鈥淚f you’re a blue state governor, why would you want taxpayers in your state sending their money to some other state?鈥� he asked. 鈥淚 think that’s a political liability.鈥�

Despite Democrats鈥� longstanding opposition to vouchers for private school and education savings accounts, which can be used for homeschooling, some, like North Carolina Gov. Josh Stein, say the program is a chance for more public school students to receive tutoring and afterschool programs.. 

That鈥檚 what the Afterschool Alliance emphasized in its submission. The advocacy organization suggested that perhaps some scholarship programs could focus on students who need afterschool activities while others could stick to granting private school scholarships. 

According to a December , conducted for the National Parents Union, more than three-fourths of parents support the tax credit if it鈥檚 targeted only to public school students for tutoring, summer learning and afterschool programs. But that figure drops to 40% if the benefit is restricted to private school tuition.

In the spirit of 鈥渞eturning education to the states,鈥� the advocacy group, , wrote that states should be able to design and run the programs in a way that reflects 鈥渢heir unique policy landscapes, community needs and family priorities.鈥�

The organization also wants the Treasury Department to allow states to evaluate schools and providers 鈥渢o assess whether the programs participating are delivering meaningful, measurable results.鈥� Such data, including average scholarship amounts and the demographics of students served, should be publicly available, the comment said.

Roger Severino, vice president of domestic policy at the conservative , told 社区黑料 that he鈥檚 not opposed to public school students receiving scholarships for tutoring or afterschool enrichment, but he doesn鈥檛 want the program to become 鈥渁 backdoor diversion of funds to public schools themselves.鈥�

To religious groups, one chief concern is that states might attempt to require private schools to change their admission policies. In its comment, the Christian Legal Society, an organization of Christian attorneys, referenced litigation in Maine, where religious schools are suing over a requirement that they accept all students, regardless of religion, disability, sexual orientation or gender identity, if they want to participate in a private school choice program.

鈥淚t is important that federal regulations prevent governors from yielding to the temptation to play politics with the program by adding additional regulations to distort it,鈥� the group鈥檚 comment said. 鈥淪uch regulations,鈥� they wrote, would lead to 鈥渋nevitable lawsuits鈥� and limit options for families.

Microschool founders and advocates have additional concerns. A section of the tax credit law says that a K-12 鈥渟chool鈥� is whatever a state law defines it to be. The problem is that most states don鈥檛 legally recognize microschools even though they represent a fast-growing sector within the private school landscape. A published last year showed that most schools participating in state school choice programs enroll around 30 students 鈥� the size of many microschools.

鈥淔amilies turn to programs like ours because their children鈥檚 needs cannot be met in traditional settings,鈥� Alexandra Batista. the owner of Steps Learning Center in Orlando, Florida, in a comment to the Treasury Department. 鈥淓xcluding these types of learning environments due to narrow or outdated definitions would further disadvantage students who already face significant barriers.鈥�

Some organizations, like the left-leaning , want the federal government to adopt an official definition of microschools as a way to better track them and monitor the quality of education they provide. 

But those in the movement are 鈥渘ot excited about that prospect,鈥� said Don Soifer, CEO of the National Microschooling Center. Some microschools in states with education savings accounts operate like small private schools, while others are more like homeschool co-ops. Some are required to earn accreditation in order to receive state funds; others aren鈥檛.

In his to the Treasury Department, Soifer said that it would be 鈥渉ighly inappropriate and contrary to legislative intent鈥� for officials to adopt an official definition of a microschool when 鈥渢he industry itself has no consensus.鈥�

Schilling, the lobbyist, said he hopes the Treasury Department addresses the issue in the rules. 

鈥淢icroschools feel like they ought to be able to participate in this and we completely agree,鈥� he said. 鈥淭he intent of the legislation was for a student, in any educational environment, to benefit.鈥�

鈥淧rivate school gives us peace of mind,鈥� Rolando Zamora, a father of two, wrote to her. 

With a family of six living on one income, Chris Meija said the scholarship 鈥渃ertainly helped ease some of the financial burden.鈥�

Organizations like the BASIC Fund, many of which are located in blue states, have operated out of the spotlight, quietly raising money from private donors to support kids from lower-income families. But now, with recent passage of the first-ever for private school choice, part of President Donald Trump鈥檚 鈥淥ne Big Beautiful Bill,鈥�  they could soon be thrust into a public debate over the next phase of the school choice movement.

鈥淲e鈥檝e been much more focused on just trying to help families and don’t want to get into the political fray, necessarily,鈥� Elginsmith said.  This fall, the BASIC Fund will help 3,100 students to attend 260 private schools. But with the federal tax credit coming in 2027, she can鈥檛 resist thinking about reaching more of the 300 to 500 applicants each year who don鈥檛 receive funding, she said. 鈥淲e’re not against public schools; we just think that they aren’t the best thing for everybody.鈥�

Ever since Trump gathered with Republicans on the South Lawn of the White House on July 4 to sign the bill, commentators have focused on one central question: What will blue states do?  The Treasury Department still has to write rules for the program, but overall, the law allows taxpayers to get a dollar-for-dollar credit, up to $1,700, if they donate to a scholarship granting organization, like the BASIC Fund. Because the legislation lets states choose whether to participate, many assume that those under Democratic control will remain firmly opposed to anything that looks like a voucher. But Colyn Ritter, a senior research associate at EdChoice, an advocacy organization, said he 鈥渨ouldn鈥檛 argue with anyone鈥� who thinks states with existing scholarship programs would be in the best position to opt in. 

BASIC is among several groups affiliated with the Children鈥檚 Scholarship Fund in New York, which annually helps about 7,000 students from low-income families across New York City attend private school. The nonprofit has partners that grant scholarships in Oregon, Massachusetts and New Jersey, to name a few other blue states. 

鈥淭hose folks presumably have relationships with some state policymakers, which we think could be helpful,鈥� said John Schilling, a consultant and adviser to the conservative American Federation for Children, a school choice advocacy group. He worked to keep the tax credit in the Republicans鈥� reconciliation bill, but is now shifting his attention to the states. Listing other Democratic strongholds, like Massachusetts and Illinois, he said, 鈥淭hese are places where parents desperately need some additional options.鈥�

Supporters of the tax credit describe it as 鈥溾�� for education and argue it鈥檚 misleading to call it a voucher because the scholarships are funded by private donations 鈥� not federal funds directly. Still, tax experts predict the could range anywhere from $8 billion to more than $100 billion per year, and opponents hope to convince political leaders and the public that the program is a bad idea. 

鈥淲hether you call it a voucher or a scholarship program 鈥� this is what鈥檚 going to happen,鈥� former Education Secretary Miguel Cardona warned last month on a media call. 鈥淧ublic education dollars will be siphoned off to pay for vouchers for private schools that don’t have to accept all students. If students in many of these private schools struggle, they’re going to be sent back to these underfunded public schools.鈥�

Others argue that private schools participating in choice programs aren鈥檛 subject to the same accountability and anti-discrimination requirements as public schools. 

鈥淭here are no testing requirements, no standards, no teacher certification mandates or any other mechanisms to ensure that participating private schools would provide an adequate education to students,鈥� said Patrick Cremin, a staff attorney for the Education Law Center, which is opposed to the program. 

He doesn鈥檛 want blue states to be tempted by the fact that the federal program would also allow groups like BASIC to create scholarships for students in public schools. Families could put the money toward tutoring, books, therapies and technology 鈥� to name a few uses. Despite their 鈥渃onstitutional obligation to fund public schools,鈥� there鈥檚 a risk, Cremin said, that states would shortchange districts if they expect taxpayers鈥� donations to cover some expenses.

Powerful political forces鈥�

Because the tax credit doesn鈥檛 take effect for another year and a half, the debate over opting in could surface in the 38 states where voters will elect governors this year and next. 

For now, choice advocates in California, where voters are expected to elect another Democrat when term-limited Gov. Gavin Newsom leaves office, aren鈥檛 hopeful about their prospects. Lizette Vallas, who runs a in Los Angeles, blamed the . 

鈥淭he California Teachers Association is one of the most powerful political forces in the state. Any legislation or opt-in mechanism that diverts funding 鈥� even indirectly 鈥� from public schools to private or nontraditional models is almost always met with unified resistance,鈥� she said. 鈥淲hile federal policy is nudging open the door for school choice, California continues to reinforce the frame around its own tightly held model.鈥�

David Goldberg, the association鈥檚 president, 鈥渁 distraction.鈥� 

In other states, like and , the race for governor is , meaning the federal tax credit has the potential to become a central campaign issue, said Joshua Cowen, a Michigan State University professor and Democrat who is also running for Congress.

The bill that included the tax credit is already causing budget challenges for state leaders, he said. Michigan, for one, is facing in extra costs in 2026 because the federal package cut tax rates and shifted some nutrition and health care spending to states.. 

As a Democrat, Cowen said his party needs a platform that focuses on prioritizing support for public schools, but he said even governors who have been dead set against vouchers may have to consider how the tax credit could support programs like afterschool tutoring. 

鈥淪tates like mine are going to be desperate for new sources of revenue,鈥� he said. 鈥淚 could certainly see governors鈥� offices taking a look at this program 鈥� not because they necessarily love it 鈥�  but because you’ve got revenue problems caused by the same exact bill that’s authorizing this.鈥� 

鈥楩amilies who are pinched the most鈥�

Observers speculate that Pennsylvania could be the first blue state to opt in. came close to supporting an education savings account bill in 2023, and the state already offers two tax credit programs for corporations that donate to scholarships. 

A from the conservative Commonwealth Foundation showed that only about half of the students who applied for aid in Pennsylvania during the 2022-23 school year received it. Those figures, school choice advocates say, are further evidence that is soaring. 

Illinois, another Democrat-led state, had a tax credit scholarship program, serving about 15,000 students, until lawmakers allowed it to . Nonprofits and Republican lawmakers are now urging Gov. J.B. Pritzker to participate in the federal program. 

鈥淔amilies and kids have borne the brunt of the program ending with many being unable to continue at their school or having to give up on the hope of attending their dream school,鈥� said Bobby Sylvester, vice president of the Urban Center, a think tank. The tax credit 鈥渨ill cost Illinois nothing, but would make all the difference to the families who lost their scholarships.鈥�

While not as as Illinois, Colorado is the home state of ACE, another network of scholarship granting organizations. About $400,000 of the more than $11 million it awards in scholarships each year in the state goes to Mullen High School in Denver. The Christian Brothers, a Catholic congregation providing education to the poor, originally founded the school in the 1930s as an orphanage. Today, the 800-student Catholic school serves 鈥渟ome very rich kids and some super poor kids,鈥� said Raul Cardenas Jr., president and CEO.

The financial support from ACE, he said, has been especially helpful to middle-income families who otherwise wouldn鈥檛 be able to fit private school in their budget. Two years ago, when he reduced scholarship awards for families in that income bracket by just $1,000, several left the school. This coming school year, leaders, he said 鈥渨ere very intentional about addressing that gap,鈥� and if Colorado opts into the program, he would further expand financial assistance to those families.

鈥淚t’s always middle income families who are pinched the most,鈥� he said. 鈥淚 see this as a way to really help them.鈥�

Voters in the Centennial State have resisted private school choice. Colorado is one of where the issue failed at the ballot box last year. A constitutional amendment would have created a right to the full array of options, including private schools and 鈥渇uture innovations in education.鈥� The vote was extremely close, 50% to 49%. In two previous state elections, voters more decisively rejected vouchers, by a 2-1 margin in and with 60% of the vote in . 

Colorado might only opt into the federal program if the Treasury Department allows states the flexibility to 鈥渃arefully regulate鈥� scholarship granting organizations, said Kevin Welner,  an education researcher at the University of Colorado Boulder.

Gov. Jared Polis, or his successor in 2026, could find the tax credit acceptable if 鈥渟tudents in public schools receive the same level of benefits鈥� as those in private schools, he said. 

But Schilling, with American Federation for Children, would have a problem with states that approve organizations providing financial support to public school kids, but not those that supplement tuition at private schools.

鈥淏lue state governors who want to remain in the good graces of the teachers鈥� unions may say 鈥極K, I’ll opt in but we only want to serve students through public schools,鈥� 鈥� he said. Regardless of which students the nonprofits want to serve, states, he said, 鈥渟houldn’t be picking and choosing.鈥� 

In March 2023, Abdijalil Sheik-Yusuf went before the Minnesota Senate Taxes Committee with a critical plea.

Not enough parents could take advantage of a state tax credit for low-income families for tutoring services from companies like his, Success Tutoring.

鈥淲hat we have here is not an achievement gap, we have an opportunity gap. We have students who are not able to get the help that they need because the parents cannot afford it,鈥� .

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Sheik-Yusuf, wearing a plum-colored suit and Louis Vuitton scarf, said Success Tutoring had helped hundreds of students overcome the 鈥渓iteracy curve.鈥� And they could help even more disadvantaged students if lawmakers would support a bill to raise the income ceiling and increase the amount of the credit.

鈥淭here鈥檚 a saying that we used to use in the classroom: Today鈥檚 reader is tomorrow鈥檚 leader. If we invest in education, it鈥檚 an investment in the child鈥檚 future,鈥� Sheik-Yusuf said.

Sheik-Yusuf鈥檚 testimony was well received by both parties, who鈥檝e long supported the K-12 Education Credit. The bill was folded into a larger tax package and passed with little attention. In fact, it was one of the few noncontroversial items of the 2023 session, when the Democratic trifecta passed a sweeping progressive agenda.

What lawmakers were unaware of at the time were the many disgruntled parents who say Success Tutoring and a related company called Achievers Tutoring outsource instruction to foreign teachers online whom their kids couldn鈥檛 understand.

Nor did lawmakers anticipate the outrage those parents would feel when they would later find thousands of dollars missing from their tax refunds to pay debts to Success Tutoring and Achievers Tutoring for services they say their kids barely used and didn鈥檛 benefit from.

The allegations surrounding the K-12 Education Credit come amid a larger crisis of fraud in state government, with hundreds of millions of dollars allegedly siphoned away from programs supposed to fund child nutrition, autism services, transportation and interpretation assistance.

The bill to increase spending on the tax credit was authored by Rep. Matt Norris, DFL-Blaine, who prior to his election to the Legislature, founded Minnesota Afterschool Advance to help more people use the credit. The organization, a collaboration between Venn Foundation and Youthprise, gives families zero-interest loans to pay for tutoring, music lessons or driver鈥檚 ed and collects the money from their tax refund. Norris helped grow the program to $1.8 million in funding for educational programs in 2022, according to .

Norris had lobbied lawmakers for years to raise the income threshold and, after being elected in 2022, it was one of the first bills he authored. The bill () expanded the tax credit from $1,000 to $1,500 per child and more than doubled the income threshold to $70,000, with higher earners eligible for a smaller credit. The bill also tied the income threshold to inflation, so it may increase every year.

After the law passed, state spending on the credit more than doubled, from $5.3 million in 2022 to $13.7 million in 2023.

Norris, who left Minnesota Afterschool Advance when he entered the Legislature, says he was unaware until recently of the mothers鈥� complaints 鈥� and debt.

Lul Mohamud鈥檚 story

Lul Mohamud learned about free tutoring help for her four children at the mosque she attended, Dar Al-Farooq, in Bloomington one day in summer 2022.

After prayer time, three men told the congregation that they could get their children back on track after the pandemic caused so many to fall behind in reading and math. The tutoring was completely free for low-income parents, she recalled them saying.

Mohamud said a mosque leader who previously ran the youth program encouraged families to sign up. So did members of a group that she respected called the Muslim Coalition.

鈥淭hey were introduced at the mosque as good people so I trusted them,鈥� Mohamud said in an interview in Somali through an interpreter. 鈥�(They) said if you don鈥檛 help your kids, your kids will fall behind.鈥�

As she was leaving the mosque, the men were standing outside the exit signing people up, and she gave one of the men her phone number. The man called her later that day. She gave him her Social Security number, and he gave her an address in Bloomington.

Mohamud says she didn鈥檛 bring her kids to begin tutoring until some months later, as school was getting back into session. She went to the address of a nondescript, three-story office building. It wasn鈥檛 at all like she pictured. It was a small office space without any clues that children learned there 鈥� no chalkboard or textbooks.

A representative for Achievers Tutoring said she would need to buy $50 laptops for each of her kids, ranging from kindergarten to eighth grade, to do the tutoring online. Mohamud didn鈥檛 have $200 for four computers 鈥� the man only accepted cash 鈥� but she was able to get two. Her two other kids could use the laptops they had from school.

Mohamud said he directed them to go to another address in Bloomington the following week for online tutoring sessions.

But that turned out to be no more promising. Instead of teachers, there were half a dozen or so young men there, scrolling on TikTok. One directed her to set up the laptops for the kids to use and told her she could leave and come back later to pick them up.

鈥淲hen I saw the place, I determined it wasn鈥檛 a place I could leave my children alone,鈥� Mohamud said.

She stayed, and watched her kids log into a virtual class with an instructor whom she believes was in another country. Mohamud speaks Somali and only a little English, but her kids are native English speakers and said they couldn鈥檛 understand the teacher. After about 40 minutes, the lesson was over.

It seemed like a joke, but Mohamud said she tried bringing them back one more time. After that, she decided to pull her kids out. She went back the next week to return the laptops, both of which had already stopped working.

Months later came a horrible surprise 鈥� thousands of dollars were taken out of her tax refund to pay for the two subpar tutoring sessions. Her refund wasn鈥檛 enough to cover the entire expense, so she went into debt.

Mohamud had signed up with a company called Achievers Tutoring, a company created in 2021 by Osman Sheik-Yusuf, who shares a last name with Abdijalil Sheik-Yusuf, the Success Tutoring founder, according to records from the Minnesota Secretary of State. (The men did not answer a question from the Reformer on how they鈥檙e related).

Both companies were registered with the same business address in Bloomington. Both companies have nearly offering online courses in math, English, coding and public speaking. Both boast 鈥�975+ satisfied students, 150+ teachers and 27+ years in experience.鈥� And both websites have identical testimonials from four satisfied individuals all named 鈥淕riffin Wooldridge鈥� with different stock images.

When sent a list of questions by the Reformer, both companies sent nearly identical statements with the same lawyer copied on the email.

The statements say Osman Sheik-Yusuf and Abdijalil Sheik-Yusuf launched their respective companies to help students of color overcome the achievement gap.

鈥淔or those who have not received the credit, we encourage them to Adhere to the guidelines set by the Minnesota Department of Revenue and Minnesota Afterschool Advance,鈥� the statement from Osman Sheik-Yusuf said.

Abdijalil Sheik-Yusuf, when asked again about the list of questions sent by the Reformer, wrote 鈥淲e compliance (sic) with all guidelines.鈥�

Mohamud says dozens of Somali mothers who signed up for tutoring services with the two companies have formed a WhatsApp group to try to help one another. Eighteen moms shared their stories with , which first reported complaints about Success Tutoring.

The companies promote their services on social media, mostly in Somali. In one TikTok video for Success Tutoring, Abdijalil Sheik-Yusuf sports a large gold watch and tells viewers from a black SUV that the only thing parents need to make their children successful is to sign up for Success Tutoring. In another video for Achievers Tutoring, Osman Sheik-Yusuf flashes the peace sign from a Tesla Cybertruck.

The two men also posted videos with grinning parents and children holding certificates, saying they鈥檝e caught up to grade level in math and reading.

In a June 2023 letter, the Minnesota Department of Revenue told Mohamud she was being audited because of the $3,000 she claimed for the K-12 Education Credit.

The agency requested a dizzying number of documents showing what programs her children were enrolled in, the dates her children met with a qualified instructor and the type of tutoring they received.

They wanted to see that she had paid for 25% of the tutoring services, as required by state law, and the contract she supposedly entered into with Minnesota Afterschool Advance. They also wanted her children鈥檚 birth certificates and school records or medical bills showing she is their guardian.

Mohamud was overwhelmed. The letter was in English, not Somali. They were also asking for things she never had: She didn鈥檛 sign a contract; she said she gave her information over the phone. She didn鈥檛 have a receipt for what she paid; she was told it was free. She didn鈥檛 have verification that the instructor was qualified; she didn鈥檛 know the teacher鈥檚 full name.

With her tax credit claim denied, in September, she received a letter from the Department of Revenue saying the entirety of her state tax refund 鈥� $2,418.43 鈥� was used to pay for her debt to Minnesota Afterschool Advance, which had advanced the money to Achievers Tutoring.

Like most low-income parents, Mohamud was counting on her tax refund 鈥� bolstered by the child tax credit 鈥� to pay for necessities and a trip to Texas with her family.

It didn鈥檛 just happen once. The next year, in 2024, more of her tax refund disappeared.

The Reformer interviewed two other women who enrolled their kids in Success Tutoring and whose stories are strikingly similar to Mohamud鈥檚 experience with Achievers Tutoring: They gave their Social Security numbers over the phone for supposedly free tutoring that would help their children recover from pandemic learning loss. Then, they got cheap laptops for the online sessions.

Raho Hussein said her 10th grader, a native English speaker, was put in a tutoring session where the instructor was teaching 鈥淎BCs鈥� and 鈥�1-2-3鈥檚.鈥� Sometimes the instructor didn鈥檛 show up at all. She had thousands of dollars taken from her tax return.

So did another mom, Sawda Ali, for her four kids. She said she only intended to sign up her two oldest children but she was also charged for tutoring for her 3-year-old and 4-year-old even though they are too young and never attended tutoring.

The women also said their kids, who are native English speakers, couldn鈥檛 understand their instructors because of their heavy accents. They looked Asian, and the mothers believed they were in a foreign country.

Tutoring from the Philippines

Julieross Elve帽a, an Achievers Tutoring instructor based in the Philippines, said she was recruited through a Facebook page for Filipino freelancers about four years ago.

She spoke to a Reformer reporter who logged into her virtual classroom one evening this month through a publicly available link on the Achievers Tutoring website. The Reformer also entered two other virtual classrooms, both led by instructors based in the Philippines.

The instructors aren鈥檛 licensed to teach in Minnesota, although at least two do have baccalaureate degrees according to their LinkedIn profiles.

Elve帽a spoke with clear English, which is one of the official languages of the Philippines, although the other two instructors the Reformer spoke to had thicker accents.

She said she has 17 students with Achievers, who are divided into two groups she meets with twice a week. She said she鈥檚 mostly there to answer questions as the kids work through online modules in reading and math.

Elve帽a has been able to help students catch up to grade-level in reading and math, some more quickly than others, she said.

鈥淚 do love teaching,鈥� she said.

She said she gets paid $4.50 per hour.

鈥淚t鈥檚 not that much I guess compared to if I work in Minnesota,鈥� Elve帽a said, laughing.

Achievers Tutoring charges parents $166 per month per child for two subjects, according to the company鈥檚 website. Contracts posted to Success Tutoring鈥檚 website start at $150 per month, with a three-month minimum and no refunds.

Parents are also charged for tutoring regardless of whether children actually attend, according to contracts available on both companies鈥� websites.

Refunds denied

Mohamud and the other mothers have been trying for months to get their money back. She started with Osman Sheik-Yusuf, who she says told her he would get the necessary paperwork to the state authorities.

Had he done so, taxpayers would have underwritten the unsatisfactory tutoring services.

So long as parents submit paperwork showing the educational expenses qualified for the tax credit, the state pays for 75% of the cost. But if the expenses are not qualified, or paperwork is missing, the funds are paid back through the parents鈥� tax refund.

Because the process is so complicated, Minnesota Afterschool Advance advertises free tax preparation help to families who take out loans for tutoring with them.

It鈥檚 unclear how much Achievers and Success have received from state funds. The Minnesota Department of Education certifies tutoring companies for the tax credit program but doesn鈥檛 track how much tutoring companies are paid. The Department of Revenue only provided the total amount claimed under the credit, but said they don鈥檛 know how much was paid to individual tutors or lenders like Minnesota Afterschool Advance because it comes from individuals鈥� tax returns, which are private.

Mohamud said Osman Sheik-Yusuf stopped returning her calls, so she went to another man she knew to complain. But he blocked her number.

She and other moms complained about the men on social media and warned others not to use their services. That seemed to motivate Osman Sheik-Yusuf to resolve their complaints: the Venn Foundation contacted her with a form that would give them business power of attorney to represent her before the Department of Revenue. But she wasn鈥檛 sure what the form meant and was by that point too distrustful to sign anything she didn鈥檛 understand.

Mohamud says Osman Sheik-Yusuf also asked for a meeting with her and an imam at the Dar Al-Farooq mosque to mediate the dispute. But she says it ended with Sheik-Yusuf insulting her with a pejorative for a rural, uneducated person. Mohamud says she and her children no longer go to the Dar Al-Farooq mosque, having lost faith in its leaders.

A spokesperson for Dar Al-Farooq denied that an imam ever mediated a dispute at the mosque with a parent and Osman Sheik-Yusuf. Mohamud shared screenshots of text messages between her, Sheik-Yusuf and a religious leader connected to the mosque.

The spokesperson for Dar Al-Farooq also denied representatives from the companies ever addressed the congregation and said the mosque has 鈥渘o formal or informal ties鈥� with Osman and Abdijalil Sheik-Yusuf.

The Dar Al-Farooq spokesperson also sent a recent , however, promoting Success Tutoring, saying it would provide 鈥渧aluable context for your story鈥� including the 鈥渟ystemic challenges minority families face 鈥� accessing the education tax credit.鈥�

While the mosque claims it has no ties with Osman Sheik-Yusuf and Abdijalil Sheik-Yusuf, the two appeared in a video promoting their services as recently as last month with a man who is the board secretary for Dar Al-Farooq, also known as the Al Jazari Institute, according to the organization鈥檚 most recently available tax filing. The man is also a lead organizer for ISAIAH鈥檚 Muslim Coalition, the group that Mohamud trusted.

Asked about the video, the spokesperson for Dar Al-Farooq said the man was there in his 鈥減ersonal capacity.鈥�

Mohamud and other Somali mothers said they sent a letter to Attorney General Keith Ellison in April but have yet to hear back. The Attorney General鈥檚 Office did not respond to requests for comment about whether they鈥檙e investigating the mother鈥檚 complaints.

This year, after Mohamud鈥檚 tax return was garnished again, she and the other mothers became more assertive.

They went on a Somali-language YouTube channel to warn other families not to sign up for the services, after which she says she and the other women received threatening phone calls. They filed a police report in Minneapolis, but the case went nowhere. A spokesman for the police department said the case is inactive.

They went to the Department of Revenue and were advised to call a consumer complaint line. They had already done that, too.

Mohamud had met with Rep. Hodan Hassan, a Democrat from Minneapolis, who had helped her find the address for the Venn Foundation. So she and seven other moms went to the address, which turned out to be the home of Venn Foundation Director Jeff Ochs. (Hassan did not return calls or an email seeking comment.)

That was in the summer, and while he seemed helpful, the women still haven鈥檛 been made whole.

鈥淲e have gone everywhere looking for assistance,鈥� Mohamud said.

In response to an interview request, Minnesota Afterschool Advance Director Erin Martin shared a joint statement with its parent organizations Youthprise and Venn Foundation saying they have a formal process for families with concerns.

鈥淲hen there are breakdowns in the system that ultimately result in MAA families not receiving the (Minnesota Education Tax Credit) and instead repaying MAA from their normal tax refund, we understand and share their frustration,鈥� the statement said.

鈥淢AA is actively working with a number of stakeholders, including Minnesota Department of Revenue and a local faith leader, to understand and help address the concerns of a group of families, as well as to work on improving the overall (Minnesota Education Tax Credit) and assignment system for all involved moving forward.鈥�

Mohamud said there have been three meetings with a different imam and representatives from Minnesota Afterschool Advance, but they鈥檝e since broken down.

Martin testified before the Legislature in support of the bill expanding eligibility for the credit in March 2023, even holding up Abdijalil Sheik-Yusuf鈥檚 Success Tutoring as an example of one of the many Black-owned organizations they partner with that provide 鈥渃ulturally relevant鈥� services to low-income students in 鈥渘ew and creative ways.鈥�

Asked if Minnesota Afterschool Advance still works with Success Tutoring and Achievers Tutoring, a spokeswoman said the businesses 鈥渁re not an offering on MAA鈥檚 of available service providers.鈥�

A spokesperson for the Minnesota Department of Education would not say if the agency is investigating Success Tutoring and Achievers Tutoring, saying only the companies are no longer certified as eligible to be paid through the tax credit. Certification expires after two years, and there are only five providers currently certified, according to the Department of Education. That means many providers on MAA鈥檚 menu are not certified.

Youthprise spokeswoman Lynne Matthews also said Minnesota Afterschool Advance will periodically visit tutoring sites in person. If their expectations are not being met those tutors could be removed from their services menu, she said.

Asked if the organization would make the mothers whole, Matthews wrote, 鈥淒espite having no responsibility or legal obligation to do so, MAA wants to do what it can to help ease the burden that families may be experiencing as a result of systems failure, in certain circumstances.鈥� 

A spokesperson for the Department of Revenue did not say if the agency is investigating Success Tutoring and Achievers Achievers, saying the agency can鈥檛 comment on specific cases. The spokesperson said they had met with 鈥渕ultiple taxpayers鈥� with concerns about the tax credit.

鈥淲e are working with all parties involved to ensure specifics of the program are being properly communicated,鈥� spokesman Ryan Brown wrote in an email.

Tutoring companies continue expansions

The tax credit remains popular with key legislators, including Republicans. Rep. Kristin Robbins, R-Maple Grove, was one of the architects of the credit when it was created in 1997 as the head of a group called Minnesotans for School Choice. Robbins and Norris, who expanded the credit鈥檚 use as the head of Minnesota Afterschool Advance, defended its value despite allegations of misuse.

鈥淩egardless of the issue with Success Tutoring, this is a tax credit that serves tens of thousands of families across the state,鈥� Norris said. 鈥淎nd the income limit and the credit limit hadn鈥檛 been updated in over 25 years.鈥�

Norris said he didn鈥檛 have enough information to say what the state should do to ensure low-income families aren鈥檛 losing their tax refunds to pay for substandard tutoring, but said it is something that should be looked at.

Robbins called the women鈥檚 experience 鈥渢errible鈥� and was surprised to learn that it was possible for non-government organizations like Minnesota Afterschool Advance to be repaid from parents鈥� tax refunds and other credits 鈥� like the child tax credit and earned income tax credit 鈥� if the Education Tax Credit wasn鈥檛 awarded by the Department of Revenue.

She said that wasn鈥檛 the case when she advocated for its creation in the 1990s and she said she鈥檚 troubled by the existence of middlemen like Minnesota Afterschool Advance who have a claim to parents鈥� entire returns.

鈥淚f there鈥檚 a loophole that says they can claw back from other parts of the tax return, that should not be,鈥� Robbins said. 鈥淚f the tutoring service doesn鈥檛 provide the service and the family wants to withhold the payment, then that鈥檚 something the family and the tutoring service have to work out.鈥�

Meanwhile, Mohamud and the other mothers say they continue to receive threatening phone calls and text messages from anonymous numbers for speaking out about their experiences.

And Achievers Tutoring and Success Tutoring continue to recruit families to their services.

Achievers Tutoring recently posted a video on TikTok and Facebook, which was shared by Success Tutoring, with Osman and Abdijalil Sheik-Yusuf meeting with an imam at the mosque and lead organizer with ISAIAH鈥檚 Muslim Coalition.

They were in Columbus, Ohio, promoting their tutoring services to families there. Ohio鈥檚 program that funds tutoring services is easier to navigate, according shared by Dar Al-Farooq in its email to the Reformer.

The men asked viewers to come to the Minnesota Capitol in January for Youth Day to advocate for making tutoring funding easier to access.

鈥淲e need to make the funding accessible. We need to make the funding something that is practically usable,鈥� Abdijalil Sheik-Yusuf said.

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Minnesota Reformer maintains editorial independence. Contact Editor J. Patrick Coolican for questions: info@minnesotareformer.com.

While a complete overhaul of America鈥檚 broken child-care market could ease the strain on families, it would require big investments that likely will remain off the political table. While President-elect Trump for decreasing child-care costs via tariffs, neither he nor has endorsed any specific policies.

There is, however, a partial solution that would bring immediate relief to parents, offset recent price increases, and boost mothers鈥� employment rates: update the Child and Dependent Care Tax Credit (CDCTC), a tax credit for working families.

As it stands, the CDCTC is not particularly generous, doesn鈥檛 keep pace with inflation, and is only available to some working parents paying for care. The maximum credit for most families with two or more children is $1,200 per year鈥攁 number that hasn鈥檛 been updated . 

Proposed updates to the CDCTC would more than offset increases in child-care prices driven by post-pandemic inflation. The introduced last January would increase benefits so that working families could receive up to $8,000 each year鈥�$4,000 per child for up to two children鈥攁nd tie benefit levels to inflation so that the tax credit鈥檚 value would not erode over time.

To understand how this change would affect a typical family, consider a married couple with two children and average, middle-class incomes. Suppose that they were paying $15,000 a year for child care before the pandemic. An approximately 20% increase in the cost of living since then has added an extra $3,000 to their child-care bill. However, the proposed CDCTC expansion would increase their benefits by $6,800, more than covering the extra cost.

The proposed changes are very similar to a under the American Rescue Plan Act of 2021 that the Joint Committee on Taxation estimated would cost the federal government . This compares to more than $110 billion for the better-known Child Tax Credit expansion. And a permanent increase in CDCTC generosity would have broad benefits for the economy that could help to offset some of its costs. For example, my research suggests that expanding the credit would increase tax revenues by who could access child care needed to join the labor force.

A reformed child care credit would bring additional benefits for lower-income families. Under the current system, benefits kick in only at higher income levels because the credit is nonrefundable: It does not help those who earn too little to pay taxes after deductions. My own calculations show that a married couple with two children would need to earn nearly $30,000 to receive any benefit from the CDCTC and nearly $40,000 to be eligible for the full $1,200 credit. As a result, the credit fails to reach the lowest-income families, even as child care consumes a larger portion of their household budgets.

In line with this, my research shows that allowing families to receive a tax refund would to an additional 5 percent of single parents, who are already working and paying for care but have incomes too low to benefit from a nonrefundable tax credit. Thus, like the , the CDCTC would reduce poverty, which could translate to more opportunities for those families and lower government costs in the long term.

Several other proposed adjustments to the federal tax code target the high cost of child care, but none would offset price increases for many families.

For example, the contribution limit for dependent care flexible spending accounts, which allow families to set aside money before taxes and then spend it on child care. The contribution limit has been capped at $5,000 since 1986, and the proposed legislation would increase it to $10,000 or more. This may sound like a big change, but it wouldn鈥檛 make much of a dent into families鈥� care costs. For the middle-class married couple with two children, doubling the contribution limit would, at most, generate an additional $600 per year in tax savings. Moreover, of workers have access to these accounts, and most of the .

Another proposal would increase the tax break for businesses that provide child care to their employees. Unfortunately for parents, very few employers appear interested in going this route. Only about of corporate tax returns include claims for the Employer-Provided Child Care Credit. As a result, the nonpartisan Congressional Research Service deems the credit to have 鈥�.鈥�

Adjusting the tax code won鈥檛 solve America鈥檚 child-care crisis. It won鈥檛, for instance, directly increase pay among workers, who tend to than animal caretakers and parking lot attendants. It won鈥檛 shorten for care. And it won鈥檛 fully offset the average family鈥檚 child-care costs. Fixing these aspects of our broken market are worthwhile ambitions, but they will require significant increases in government spending that are unlikely to pass Congress anytime soon. In the meantime, if policymakers want to bring immediate relief to , updating the child care credit is a promising option.