ECCA in New Mexico
New Mexico has declined to participate in the federal scholarship tax credit program. Also known as the Federal Scholarship Tax Credit (FSTC), the program was enacted as IRC §25F and takes effect January 1, 2027.
- Governor
- Michelle Lujan Grisham
- Democrat
- Status
- Declined
- As of 2026-01-27
- Program begins
- January 1, 2027
- Federal tax credit live
What New Mexico's decision means
Governor Michelle Lujan Grisham announced on 2026-01-27 that New Mexico will not opt in to the federal Educational Choice for Children Act (ECCA). Unless the decision is revisited, New Mexico will not designate Scholarship Granting Organizations (SGOs), and New Mexico families will not be eligible for ECCA scholarships when the program begins on January 1, 2027.
Donors in New Mexico — like donors anywhere in the country — can still claim the federal tax credit (up to $1,700 per tax return) by giving to SGOs in states that have opted in. The federal tax dollars they redirect will fund scholarships for students in other states rather than staying in New Mexico.
The decision is not necessarily permanent. Governors can update their states' participation each year by submitting a list of qualifying SGOs to the U.S. Treasury by January 1.
Frequently asked questions about ECCA in New Mexico
Does New Mexico participate in ECCA?
No. Governor Michelle Lujan Grisham has stated that New Mexico will not opt in (announced 2026-01-27). Unless the decision is reversed, New Mexico families will not be eligible for the scholarships.
Who is the governor of New Mexico and what is their position on ECCA?
Governor Michelle Lujan Grisham (Democrat) has stated the state will not participate.
Can New Mexico residents donate to an SGO and claim the federal tax credit?
Beginning January 1, 2027, any U.S. taxpayer can claim a federal income tax credit of up to $1,700 per tax return for donations to a qualifying Scholarship Granting Organization, regardless of the state they live in. Because New Mexico is not currently participating, donations from New Mexico residents would need to go to SGOs in opted-in states — funding scholarships for students in those states rather than in New Mexico.
When does the ECCA program begin?
The Educational Choice for Children Act program begins on January 1, 2027. Donations made on or after that date are eligible for the federal tax credit. Each participating state's governor must submit a list of qualifying Scholarship Granting Organizations to the U.S. Treasury by January 1 of each participating year.
Other states with the same status
States that have also declined.
Learn more about ECCA
In-depth guides on how the program works, who qualifies, and how to participate.
- What is ECCA / FSTC?A complete guide to the Educational Choice for Children Act (ECCA), also known as the Federal Scholarship Tax …
- The federal tax credit, explainedHow the Federal Scholarship Tax Credit (FSTC), also known as the ECCA §25F credit, works for donors: $1,700 pe…
- Scholarship eligibilityWhich K–12 students qualify for ECCA scholarships, the income limits, what schools and educational expenses ar…
- Scholarship Granting OrganizationsWhat an SGO is, how organizations get designated by their state, the 90/10 rule, what compliance looks like, a…
- How states opt inHow a state opts in to the federal ECCA scholarship program: the governor's annual Treasury submission, legisl…
- ECCA for special-needs familiesHow families of K–12 students with disabilities can use ECCA scholarships to fund therapies, specialized instr…
Make your voice heard in New Mexico
Contact Governor Michelle Lujan Grisham and let them know that New Mexico families want access to ECCA scholarships when the program begins January 2027.
Contact Governor Grisham →