By Becca Savransky
Idaho Statesman
(TNS)
BOISE, Idaho — The Idaho Supreme Court rejected a challenge to Idaho’s $50 million tax credit program that directs public money toward private schools and homeschooling expenses.
In an opinion released Thursday, the court denied a request from a coalition of education groups and advocates asking justices to prohibit the tax credit program, and dismissed the petition.
The ruling represents a win for Republican lawmakers who championed the tax credit bill last session after trying for years to pass legislation to provide funds for families who choose not to send their children to public schools.
Under the law, eligible families can receive a refundable tax credit of up to $5,000. Parents of students with disabilities can receive up to $7,500. Qualified expenses include tuition for nonpublic schools, tutoring, assessments and transportation.
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Shortly after the bill was passed, education groups sued, arguing that the law violated Idaho’s Constitution, which requires the state to create and maintain “a general, uniform and thorough” system of free public schools.
Attorneys from both sides presented their arguments before the Idaho Supreme Court justices last month.
During the roughly hourlong arguments, attorneys arguing against the law said the Idaho Constitution specifically requires the state to maintain a single system of free and uniform schools, hinging on the word “a” used in the document. Attorneys also argued that it violated the “public purpose doctrine” that state funds must be used for a public purpose.
The Idaho Supreme Court said the wording in the Constitution “establishes a floor, and not a ceiling,” and rejected the argument that the tax credit program has primarily a private purpose.
Justices said the intent of law, according to the legislation, was to allow parents the ability “to choose educational services that meet the needs of their individual children.” Education is a public benefit, and the tax credits could be spent in more places than just private schools, they said.
Thousands applied for tax credit
Applications for the program have been open for less than a month. Since Jan. 15, more than 5,000 families have applied for more than 9,000 students, according to a website updated by the Idaho Tax Commission.
During the application window, families who earn up to 300% of the federal poverty level have priority. For a family of four, that would be around $96,000, according to the 2025 guidelines.
The program will be capped at $50 million.
Those in support of these programs have said public schools don’t fit every child’s needs, and have argued that the tax credit would allow parents to choose the best options.
Those opposed worried it would direct money to schooling options with little oversight or accountability. Advocates against the law have also warned that public schools already face large budget gaps. Idaho consistently ranks last or near last in funding per pupil.
Photo caption: The Idaho Supreme Court rejected a challenge to Idaho’s $50 million tax credit program that directs public money toward private schools and homeschooling expenses. (Darin Oswald/Idaho Statesman/TNS)
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©2026 Idaho Statesman. Visit at idahostatesman.com. Distributed by Tribune Content Agency LLC.
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