**Minnesota Governor Rejects Federal Tax Credit, Criticizes GOP Proposal**

March 25, 2026 - 01:51

Governor Tim Walz has firmly declared that Minnesota will not participate in a proposed federal tax credit expansion, dismissing the idea as "never going to happen." The Democratic-Farmer-Labor (DFL) governor and former public school teacher stated his unequivocal opposition to opting the state into a program that would allow the use of public funds for private education expenses.

The proposal, supported by Republican legislators, centers on the federal 529 education savings plan. It would permit states to transfer a portion of their federal tax dollars into accounts for private K-12 schooling, including religious institutions. Proponents argue it offers families more educational choice.

Governor Walz offered a sharp rebuke to this plan, framing it as a direct threat to public education funding. He argued that diverting resources would weaken the state's public school system, which he has consistently prioritized for increased investment. His stance sets the stage for a significant political clash at the State Capitol, highlighting a fundamental divide between the DFL and Republicans on education policy and the use of state finances. The governor's statement signals that any bill advancing this tax credit change would face a certain veto.