Fugate Votes to Opt Kentucky Into Education Tax Credit, Pledges Owsley SGO

The Kentucky House of Representatives approved House Bill 1 by a 79-17 vote with one abstention, clearing the way for the state to opt into the federal Education Freedom Tax Credit and the scholarship-granting organization, or SGO, model. Representative Chris Fugate, R-Chavies, tied his vote to local needs in Eastern Kentucky, saying, “My understanding is this is to help the poorest of the poor,” and adding, “There are no big private schools in Owsley County.” Fugate said he plans to help Owsley County start an SGO if HB 1 becomes law.

HB 1, carried on the House floor by Rep. Kimberly Poore Moser, R-Taylor Mill, is described in legislative summaries as paving the way for Kentucky to opt into a federal educational funding program created after last year’s House Resolution 1 - the One Big Beautiful Bill Act in Congress. Kentuckynewera and other reporting note that the bill’s purpose is to allow the state to participate in the federal Education Freedom Tax Credit and to use SGOs as the vehicle for scholarship funds.

Moser spoke on the floor in Frankfort in support of HB 1, arguing the measure would prevent Kentuckians from missing out on federal resources. On the House floor she said the bill “would ensure Kentuckians don’t miss out on a federally-funded opportunity.” The vote took place Tuesday, March 3, 2026, and the chamber’s roll call recorded 79 yeas, 17 nays, and one abstention.

The vote drew at least one cross-party supporter who voiced reservations. Rep. Tina Bojanowski, D-Louisville, said she “struggled to decide whether to vote yes or no on the legislation. She ultimately decided to vote yes with the commitment to help public schools in her district as well.” Reporting in Kentuckynewera notes other unnamed lawmakers also cited benefits for public schools in their communities as reasons for voting in favor.

Opponents numbered 17 in the House roll call; materials accompanying coverage note concerns that the program could lead to “less funding” for some public schools. The supplied reporting does not include the names of the 17 who voted no or the single member who abstained, nor does it provide a fiscal note or dollar estimates tied to HB 1.

The House passage arrives amid a busy Frankfort session reflected in legislative listings that appeared alongside HB 1, including HCR 40 on veterans’ hyperbaric oxygen therapy pilot programs, HJR 4 applying for an Article V convention, HB 455 on abortion and Down syndrome, HB 535 on Kentucky Educational Excellence Scholarships, and other measures. With the House approval recorded March 3, Rep. Fugate’s pledge places a spotlight on Owsley County’s needs: local lawmakers will now need to outline how an SGO would be established and how scholarship dollars would reach families if the opt-in becomes law.