Michigan’s Republican gubernatorial candidate backs federal school tax credit program

Republican gubernatorial candidate John James said this week he would opt Michigan into a new federal education tax credit program if elected governor, promoting a policy he says he helped pass as a sitting member of Congress, while Democratic rival Jocelyn Benson raised concerns about the program’s transparency.

James held a virtual press conference on Sept. 2 to detail his support for the Education Freedom Tax Credit. Under the federal program, taxpayers could donate up to $1,700 to state-approved Scholarship Granting Organizations. The donation would then be subtracted from the donor’s federal tax bill, with the resulting funds distributed to K-12 students, both public and private, as scholarships. James said the funds would help Michigan families and that he planned to opt the state into the program if he is elected governor.

James pointed to Michigan’s low national ranking in education, saying “anything greater than 0 would be better” for a state school system he described as ranked 45th in the country. He also argued that Michigan is at risk of losing students to neighboring states Indiana and Ohio, which have both opted into the program, along with 28 other states. In response to concerns that the program would decrease education funding in areas with a smaller local tax base, James said the governor’s office already has relationships with foundations such as Kellogg, Kresge, and Skillman that could help close funding gaps.

Benson, Michigan’s current secretary of state, said in a statement to MLive.com that she was open to any policy that brought more resources into schools but that she was not willing to commit taxpayer dollars to a program overseen by the Trump administration without knowing “where the money from this program will go” or how it would improve outcomes for Michigan students. Benson has proposed her own education plan built around raises for Michigan teachers and establishing requirements for timely passage of a state education budget. 

Michigan’s current governor, Democrat Gretchen Whitmer, could decide to opt the state into the tax credit program before the end of her term.

The tax credit James is promoting traces back to his current term representing Michigan in the U.S. House. According to his campaign, James “fought to pass” the federal scholarship tax credit in Congress, where it was enacted in 2025 as part of the Big Beautiful Bill, and he has pledged to formally opt Michigan into the program on his first day as governor, if elected.

The announcement is one piece of a broader education platform James calls his Education Freedom Agenda, which sets a goal of making Michigan the top-ranked state for education by 2037, the state’s 200th anniversary. The plan calls for expanding charter school access, tying gubernatorial accountability to education outcomes through a proposed constitutional amendment, phonics-based literacy instruction, career and trade certification options alongside traditional diplomas, and increased pay for teachers. James has separately proposed a Parents’ Bill of Rights covering curriculum transparency, parental access to student health records and other education-related parental rights issues.

James and Benson will face off for the Michigan governor’s seat in the Nov. 3 general election.