A controversial new tax incentive included in a major GOP domestic policy bill is drawing sharp opposition from teachers unions, complicating its adoption by Democratic-led states. The provision, designed to encourage private investment in education, has sparked resistance from organized labor groups who argue it undermines public school funding. Governors from the Democratic Party now face a dilemma: whether to pursue the financial benefits of the incentive despite the unions’ opposition. The political divide over education funding and school choice could further intensify as states weigh their options.


Democratic governors eyeing a tax incentive created by the GOP’s “big, beautiful” bill have one big reason not to sign up: teachers unions hate it. The GOP’s domestic policy law established a tax ...