Colorado bill would impose state nondiscrimination rules on schools accepting federal scholarship funds

DENVER — A bill headed to the House Education Committee on March 26 would require Colorado private schools that accept students funded through the federal Education Freedom Tax Credit program to comply with the state’s nondiscrimination laws, including protections based on sexual orientation, gender identity, and gender expression.

HB26-1292, sponsored by Rep. Lori Goldstein (D-Westminster), Sen. Cathy Kipp (D-Fort Collins), and Sen. Janice Marchman (D-Loveland), would also mandate that participating schools comply with state and federal disability laws. Schools that violate these requirements could face an injunction and suspension of their eligibility to receive scholarship funds.

The federal Education Freedom Tax Credit, created by President Trump’s “big beautiful bill” signed into law last summer, offers taxpayers a credit of up to $1,700 for donations to qualified scholarship granting organizations. Credits take effect in 2027.

The bill’s sponsors say they are adding necessary guardrails. “We can’t stop the governor from opting into this,” Sen. Kipp told Chalkbeat Colorado. “We can do the best we can to put some guardrails around its use so that these programs don’t discriminate against students.”

Opponents argue the bill would make participation impossible for most private schools. ACE Scholarships CEO Norton Rainey and Colorado Association of Private Schools executive director Weston Kurz wrote that most private schools would be “stuck between the choice of surrendering their First Amendment rights and assuming potentially catastrophic financial liabilities or forgoing participation” in the program, according to Colorado Politics.

Gov. Jared Polis, who founded two public charter schools, was one of the first Democrat governors in the nation to opt into the federal program. He opposes HB26-1292; a spokesperson said the governor “is concerned that HB26-1292 would hamstring the state’s ability to bring new funding for much-needed services like afterschool programming and tutoring for all students across the state,” Chalkbeat reported.

On The Kim Monson Show, Brad Beck called the bill “an affront on parents and families making the decisions.” The federal program is “a great windfall for education and for choice,” Beck said, and questioned why lawmakers would limit it. “Why are they taking this away from parents or just taxpayers to direct money in a certain way?”

The Colorado Education Association, the state’s largest teachers union, supports the bill. The hearing before the House Education Committee is scheduled for March 26 at the Capitol.