Former Virginia Governor Glenn Youngkin Talks Education Freedom Tax Credit

Summary

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Bloomberg Talks — Former Virginia Governor Glenn Youngkin on Education Freedom Tax Credit

Date: August 5, 2026
Duration: ~19 minutes
Host(s): Kailey Leinz, Joe Matthew
Guest: Glenn Youngkin (Former Governor of Virginia)

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Episode Overview

This episode of "Bloomberg Talks" features an in-depth conversation with former Virginia Governor Glenn Youngkin, focusing on the Education Freedom Tax Credit, public education reform, and the political landscape ahead of the midterms. Youngkin discusses the national push for school choice, the politics behind state adoption of the credit, data center policy debates, inflation, and speculation about his political future.

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Key Discussion Points and Insights

1. Introduction to the Education Freedom Tax Credit

[00:38–01:32]

• Empowering America’s PAR Grants, a new policy group founded by Youngkin, is launching a media campaign supporting the Education Freedom Tax Credit, which was part of last year’s “One Big Beautiful Bill.”
• The tax credit enables privately funded scholarships for tuition, tutoring, and services for children, including those with disabilities.

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2. How the Tax Credit Works and School Choice Debate

[01:32–03:04]

• Governor Opt-In System: States can choose to participate. Private donations are incentivized via a federal tax credit; no state dollars are used.
• Beneficiaries: Scholarships can cover private and public school expenses, including tuition, equipment, and transportation.
• No Impact on State Education Funds: Youngkin claims, “it doesn’t take a single dollar away from state education funds. And in fact, it’s additive to it.” (Youngkin, [01:53])
• Current Participation: 30 states have opted in; 20 have not. Youngkin suggests political opposition, “putting politics in front of the needs of their citizens.” ([02:25])

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3. Political Resistance and Union Opposition

[03:04–03:58]

• Teachers’ Union Opposition: Youngkin argues, “the primary opposition comes from teachers unions because they don’t want to see anything damage the monopoly hold.” ([03:12])
• Universal School Choice: Over 90% of students would be eligible, making this “as close to universal school choice as we can get.” ([03:23])
• Misconceptions: “The idea that it takes money away from public education is just wrong.” ([03:37])

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4. Education Choice and Affordability in Today’s Economy

[03:58–05:50]

• Economic Backdrop: Affordability is the top concern for voters due to inflation and global conflict affecting gas prices.
• Relevance to Education: School expenses (tuition, tools for public education) are a major affordability issue for families.
• Voter Priorities: "75% of voters say that K through 12 education is one of their top three issues." ([04:59])
• Advocacy Message: The tax credit program is posited as a solution intersecting both education and affordability without burdening state budgets.

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5. Debate on Economic Performance and Policy Attribution

[05:50–07:57]

• Partisan Narratives: Discussion on which party "owns" affordability and inflation issues. Youngkin blames Biden-era policies for “record inflation” with persistent effects ([06:11]), while acknowledging pressures from international conflicts and tariffs.
• Optimistic Economic Outlook: Youngkin notes, “the underlying economy is really strong... GDP print at 1.5% last quarter was really masking incredibly strong growth...” ([07:09])
• Prospects for GDP Growth: Cites Secretary Bessen's projection of strong back-half growth due to exports and business investment.

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6. Policy Perspectives on Data Centers

[07:57–12:51]

• Local Autonomy: In Virginia and elsewhere, data center approval is a “local level” decision ([08:33]). Localities hold final say over data center development.
• Power Usage and Rates: Youngkin supports higher electricity rates for large users, “because they're the ones who are using large amounts of power.” ([09:09])
• Economic Impact: Data centers create “tens of thousands of jobs,” including in supply chains ([10:09]).
• Community Engagement: “It is incumbent on the developers and the hyperscalers to recognize that there's real pushback and they got to go to work in order to address some of these major concerns.” ([10:35])

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7. Is the Data Center Boom a Repeat of the Late ’90s?

[10:45–12:51]

• Market Parallels: Youngkin contrasts today’s data center building (often with contractual users/revenues) with the speculative “build-it-and-they-will-come” approach of the 1990s tech boom ([11:14]).
• National Security Tie-In: Data center infrastructure is essential for U.S. security and competition with China.
• Constructive Dialogue: Calls for discussions around local concerns like water and power, emphasizing solutions and community agency.

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8. 2028 Political Speculation and Focus on Policy

[12:51–16:06]

• Repeated Denials of 2028 Presidential Bid: “I don’t anticipate being on the debate stage,” says Youngkin, emphasizing focus on present policy ([13:21]).
• Education Reform Urgency: Cites “60 to 70% of our young students aren’t proficient in reading and in math,” and warns against reducing standards ([14:20]).
  • “This is the travesty of K12 education. And this is why we have to unleash school choice like we are. But we also have to fundamentally transform our public education by raising expectations of excellence.” ([14:28])
• Listing Education Reforms: Multiple pathways for credentials, record teacher salary investments, banning cell phones in schools.
• Deadline for Action: "Governors have to opt in by January 1, 2027..." ([15:21])

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9. Further Political Commentary and Party Dynamics

[16:06–17:55]

• State Races and Party Identity: Youngkin warns about "bait and switch" candidates who run as moderates but govern far left.
• Concerns about Socialism: “Far left candidates... try to pretend that they're moderate so they can get elected. And then they're going to turn around and govern, just like he has said over and over again.” ([16:44])
• Call for Unity: Urges Americans "to come together and say, we're going to stand for the basic belief system of this nation." ([17:42])

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Notable Quotes and Memorable Moments

• On the Tax Credit’s Impact:
  “These scholarships can be life changing. And therefore I'm asking governors across the country opt in and we're going to work through empowering America's parents to educate American citizens and families that this is available to them.”
  — Glenn Youngkin ([02:17])

• On Universal School Choice:
  “This is as close to universal school choice as we can get.”
  — Glenn Youngkin ([03:23])

• On Educational Decline:
  “We have literally 60 to 70% of our young students who aren't proficient in reading and in math. We see this declining as opposed to improving as many, many states are actually reducing expectations for their kids in order to tell a lie to their parents that they're doing well and meanwhile they can't read and write.”
  — Glenn Youngkin ([14:20])

• Affirmation about Not Running in 2028:
  “I don't anticipate being on the debate stage. Somebody just asked me in an interview, Is this about 2028? I said no.”
  — Glenn Youngkin ([13:21])

• On Community Control and Data Centers:
  “This is what this is all about. They should not be forced on communities because communities should have this final say.”
  — Glenn Youngkin ([10:27])

• On Party Identity Struggles:
  “This stuff is really, really crazy stuff. And I think it's a chance for Americans, Republicans, Independents and Democrats, to come together and say, we're going to stand for the basic belief system of this nation.”
  — Glenn Youngkin ([17:42])

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Timestamps for Important Segments

• 00:38 — Opening: Introduction of the scholarship program and guest
• 01:32 — Explanation of Education Freedom Tax Credit and state opt-in
• 03:04 — Political opposition and universal school choice
• 04:16 — School choice relevance during times of economic strain
• 05:50 — Youngkin on inflation, economic policy, and GDP growth outlook
• 07:57 — The data center expansion debate: power, community, local policy
• 12:51 — 2028 speculation and Youngkin’s response
• 14:20 — Youngkin critiques U.S. education proficiency and reduced standards
• 15:21 — Urgency for states to opt in by 2027
• 16:06 — Commentary on party extremes and American values

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Concluding Notes

Glenn Youngkin uses the episode to push hard for widespread adoption of the Education Freedom Tax Credit, repeatedly making economic, policy, and equity-based arguments for school choice. He positions himself as a reformer focused on immediate action and shies away from presidential rumors, instead pressing states—especially those led by Democrats—to act before the 2027 opt-in deadline.

The conversation moves fluidly from the mechanics and political hurdles of the tax credit to broader issues like data centers and American party politics. Youngkin is steadfast in his message: education reform is urgent, the school choice movement is poised for major expansion, and the nation must resist ideological extremes in favor of core principles.

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Transcript

[Bloomberg Tech Host]

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[Kailey Leinz]

is more important than our kids. So who'd be against scholarships for tuition, tutoring services for kids with disabilities, all paid for by a federal tax credit with no state dollars. Welcome back to Balance of Power on Bloomberg TV and Radio alongside Joe Matthew. I'm Kailey Leinz and that's part of a campaign by Empowering America's PAR Grants, a new policy group launching a multimillion dollar media blitz heading into the midterms supporting the Education Freedom Tax Credit, a scholarship program to promote school choice that was created by last year's One Big Beautiful Bill. The group was launched by former Republican Governor Glenn Youngkin of Virginia, and he's joining us now in our DC Studio. Governor, welcome to Bloomberg.

[Glenn Youngkin]

Great to be with you. Thank you for having me. And thanks for really shining a bright light on this critical topic, which is education freedom for families all across the country, simply enabled by governors opt in.

[Kailey Leinz]

Well, so talk to us about what it is they would be opting in here and whether this would in some way detract from public schools.

[Glenn Youngkin]

Yeah, well, as part, as you said, as part of President Trump's Working Families Tax Cut act, the Education Freedom tax credits were enabled and they unlock state by state scholarship opportunities where if you want to support scholarships in Virginia, because I opted in, I was the first governor to opt in, then you can donate up to seventeen hundred dollars and get an immediate full tax deduct from your federal return. And those scholarships can then be used for tuition, they can be used for tutoring, they can be used for equipment, they can be used for transportation, they can be used for families that have a developmentally disabled child who need extra services, students who are going to private school, but also students in public school. And it's funded by private donations and a tax credit. And therefore it doesn't take a single dollar away from state education funds. And in fact, it's additive to it. And so there's really no reason why a governor would not opt into this. And we have 30 states that have opted in, but we have 20 that haven't. And the 20 that haven't, I believe, are putting Politics in front of the needs of their citizens. Because these scholarships can be life changing. And therefore I'm asking governors across the country opt in and we're going to work through empowering America's parents to educate American citizens and families that this is available to them. But they need to reach out to their governor and tell them to opt in.

[Joe Matthew]

So what? Where are the politics here? Why are people saying no? Is this being seen as a glorified voucher program? What would be the opposition?

[Glenn Youngkin]

Well, the primary opposition comes from the teachers unions because they don't want to see anything damage the monopoly hold that they have on education today, when in fact they should be for this. Because it not only yes, provides opportunities for private school tuition for families that otherwise couldn't afford it, but it provides also funds and scholarships, scholarships for students in public school. And the bottom line is the way this is structured that over 90% of America's students would be eligible. I mean, this is as close to universal school choice as we can get. And the idea that it takes money away from public education is just wrong. And therefore we should start telling the truth and governors should opt in and not put politics in front of their kids.

[Kailey Leinz]

Well, I have to ask you, as you are clearly focusing a lot of your political capital on this initiative at a time when the country is at war, it's fueling higher gas prices. People have affordability challenges that they often talk about from gas to groceries to health care. Why is school choice such an important issue?

[Glenn Youngkin]

Well, first of all, affordability is the top issue in voters minds right now. And I understand why. I mean, listen, the Biden era inflation that was unleashed on our nation has had a long tail and it still presents itself at the grocery store and lots of other places. And of course course with crude prices that have been elevated because of the Iran conflict, we're seeing gas prices elevated as well. But now we see them coming back down. And of course oil prices today are around 75 bucks and we're seeing gas prices come back down. And I think the work that is being done by Kevin Warsh will also translate into really de inflationary kinds of policies. And as a result, I think we're going to see coming into the fall a real opportunity for us to celebrate the strong economy that we have. But also recognize that this concern about affordability is real. Now. Affordability also translates itself into how am I paying for my child's either tuition at a private school or for the things they need to go to public school. And education is a huge issue in voters minds, 75% of voters say that K through 12 education is one of their top three issues when they vote. Of course, affordability is the top one. And so here's a chance for us to really push for governors to opt into a program that addresses two real issues for affordability, because it provides scholarships that don't cost their state anything in an area that they really care deeply about, of course, which is the education of their children.

[Joe Matthew]

Well, so you're speaking to affordability in a very compelling way. The president is actually speaking to it right now in Las Vegas by way of the one big beautiful bill and no tax on tips, where this very program that we're talking about was born. But he's also said that Republicans have won on affordability and that it's a Democrat hoax. Is that not the right view?

[Glenn Youngkin]

Well, I think what we all know is that the record inflation that was unleashed during Joe Biden has a long tail. And the Democrats have done a really good job of trying to convince Americans that the economy is failing and therefore what a lot of people are seeing every day, which is, of course, elevated prices resulting back from two or three years ago.

[Joe Matthew]

But you had a tariff regime and a war in the Middle east, and they're ever higher.

[Glenn Youngkin]

Yeah, Well, I think what we've demonstrated first is that the war in the Middle east is a real impact on fuel prices. And, and we know fuel prices are a major contributor to prices and everything else. It's, you know, crude's a meaningful input into most manufacturing processes and of course, transportation costs for every good that's transported around the country. And so as gas prices went up, of course we've seen some pressure, upward pressure on inflation. And I think as gas prices come back down, we're going to see this inflationary pressure relieved and we're going to see prices abate. This is, this is what we've seen time in and time out when it comes to gas prices moving up and down. And that's why I think it's so important today for us to recognize the underlying economy is really Strong. Listen, the GDP print that was at 1.5% in the last quarter was really masking incredibly strong growth in consumer spending and in business investment. And the only detractor from it was, in fact, large inputs of machinery and tools that are going into all the factories that are being built all over the United States. And so I think we also see, as Secretary Bessen said earlier, a real opportunity for real strong GDP growth in the back half of the year as the record exports that we had in the second quarter are actually going to take charge over importance exports. And I think we're going to see GDP very strong in the back half.

[Kailey Leinz]

Well, you mentioned factories being built. It's not just factories, it's also data centers. This is obviously something that Virginia knows very well. Data data center ally is not too far away from us now. And I wonder, as a former governor, how you're viewing the current debate around the proper approach, policy wise to data centers and regulating their development. We saw a moratorium put in place in New York by Governor Hochul, but this seems to be bipartisan. Governor Abbott yesterday says that no data centers in Texas are moving forward until an audit is completed. What's the right approach here?

[Glenn Youngkin]

So the data center debate is a real debate around issues that matter a lot to voters. And so my first approach on the data center debate is it needs to first take place at the local level because at least in Virginia, and I can't speak for how it works in every other state, the localities are where data centers are approved. So I've always felt that local governments, state super county supervisory boards and city councils should be where these decisions are taken for the zoning and all the appropriate permitting for a data center in their locality. And if a locality doesn't want it, well, then they shouldn't take it. I think second of all, the issues around power are real issues. And the president has gone to work to push all of the developers to put power behind the meter. And in Virginia, when I was governor, we actually passed a bill that I signed that enabled our regulatory authority to create customized rates so that large users of power would pay more and appropriately so pay more because they're the ones who are using large amounts of power. I think these kinds of developments are really important. Listen, there's a lot of money that's going to be invested in the data center community. Well, supply chains come with it. And you know, one of the things that I have wanted to just make sure I correct the record on is there are a lot of jobs that do come with data centers, a lot of them. And some of them are missed because it's the supply chain that comes into it. Everything from the power supply equipment manufacturers and the H VAC equipment manufacturers and the folks that put the racks and stacks together and the service companies. It's tens of thousands of jobs in Virginia. And so this debate is not one we should dismiss. And in fact, I strongly have advised government leaders and of course the business leaders to engage with communities and listen to their concerns, and it's upon them to actually provide good answers. And if they can't get those answers, then the communities are going to say no. And this is what this is all about. They should not be forced on communities because communities should have this final say. But it is incumbent on the developers and the hyperscalers to recognize that there's real pushback and they got to go to work in order to address some of these major concerns.

[Joe Matthew]

Fascinating to hear from you, especially knowing Virginia was the data center capital. Maybe it still is. Keep your governor's hat on, but put your old Carlyle hat back on as well. The question that Kelly followed up on there, there's a real concern in the market that this is the late 90s all over again. You were in Virginia when AOL was the biggest media company in the world, Relay and Fiber everywhere, building all those data centers. And then there was obviously a few difficult years after that as we digested all that spending. Does that rhyme with what's happening now?

[Glenn Youngkin]

Well, my personal view is that the, the investment decisions that are being made around data centers are directly tied to revenue streams that are coming off the back end.

[Joe Matthew]

Yeah.

[Glenn Youngkin]

And so this is infrastructure. This is infrastructure that's required for national security in order to make sure that we can enable our successful competition with China. But it's also infrastructure that comes with contractual counterparties, and that means that these, these data centers particularly have revenue that meet their investment needs. I mean, that's the core to any, any investment decision. Now, if you're building things and with hope, you know, build it and they will come mentality, well, then, you know, you may have some challenges. But the vast majority of the data center development is coming with contractual obligations in order to use the compute that's there. Let me just get back to the core issue, though. The core issue is that many, many Americans are concerned, and therefore, we need to go to work to discuss these concerns and address them. And if there are concerns around water, let's talk about it. And let's make sure that we're taking care of our water resources. If there's concerns around power, let's make sure that we have rate constructs that demands that our data center hyperscalers are paying much higher rates because they're using much more power and that they're bringing their own power when they can. But let's do this in a constructive way where we have this dialogue with community members so that they can reflect their views eventually, who they elect to represent them in their local governments.

[Kailey Leinz]

Well, and we certainly are seeing this as a live issue in this midterm cycle and in 2026. We've heard a lot about it across our conversations across the country. I would imagine it very well could be in 2028 as well. And we have to ask you about 2028, Governor, because I'm sure you're well aware that people are wondering if you will eventually throw your hat in the ring to run for president. President Trump suggests that he likes J.D. vance and Marco Rubio, and potentially there could be a Vance Rubio ticket in the offing. Would you roll out, rule out running against a chosen taker of the mantle?

[Glenn Youngkin]

Yeah, I've been asked this a lot and I've answered it the same way every time, which is, I don't, I don't anticipate being on the debate stage. Somebody just asked me in an interview, Is this about 2028? I said no. Jerry Baker asked me in an interview recently when I was with someone who's clearly running on the Democrat side. Will we see you both in the debate state? I said no. I'm really focused on issues that I believe translate into better futures for Virginians and Americans. And education right now is one of those most important topics. Listen, K through 12 education in America is broken. We know this. We have literally 60 to 70% of our young students who aren't proficient in reading and in math. We see this declining as opposed to improving, as many, many states are actually reducing expectations for their kids in order to tell a lie to their parents that they're doing well and meanwhile they can't read and write. This is the travesty of K12 education. And this is why we have to unleash school choice like we are. But we also have to fundamentally transform our public education by raising expectations of excellence. Excellence by providing multiple pathways for students so that they can pursue their passion and maybe get an industry recognized credential right out of school and go to work in one of these great fields. In Virginia, we drove that in a big way to the point where we had 90% of our students who graduated with an industry recognized credential. I mean, this is hugely enabling for students. But on top of that, we got the cell phones out of school, we had record investments into teacher salaries and budgets. It takes all of this, but we have to enable parents to be at the head of the table. And when we do that and we focus on transforming public education, I think we have a shot of transforming our education system from the failure that it is today to a successful education system that unlocks the dreams of our kids.

[Joe Matthew]

I feel like a speech like that would be noticed in 2028.

[Kailey Leinz]

I don't know about you, but point of clarity. No, not on the debate stage in 2028 or ever.

[Glenn Youngkin]

Well, that's what everybody keeps asking me and I keep answering it the same way over and over and over again. And so, you know, again, this is, this issue is one for the here and now. Governors have to opt in by January 1, 2027, so they literally have four plus months to get moving. And that's why places like Pennsylvania and Wisconsin and Michigan and Arizona, where we have Democrat governors with citizens who want this, who haven't opted in, they should feel the pressure from their citizens to opt into this great program that provides these great scholarships.

[Joe Matthew]

You just worked in some swing states also. You know, we have, it's a problem when they stop asking you about 28.

[Kailey Leinz]

Right?

[Joe Matthew]

You don't mind if we go there. Thank you.

[Glenn Youngkin]

I mean, listen, at the end of the day, I am really humbled every time we have this discussion, but I've been consistent from the day I was elected as governor. You know, there's, there are really important issues at hand, most important issues at hand. And one of the things I deeply respect about Vice President Vance is he is saying to Everybody, focus on 2026. Please focus on 2026. Because listen, what we've seen, of course, is what we saw in Michigan last night where, where the Democrat Party is, is waging a battle for its very soul. And you see socialists winning it. And now you have a socialist candidate for Senate in Michigan and you're about

[Kailey Leinz]

to see he's not a member of

[Glenn Youngkin]

the dsa, but you see what he espouses. And I think this is once again reflective of the effort of far left candidates to present themselves as moderates, when in fact we know they're not. And look at Abigail Spamberger. I mean, she campaigned as a moderate in Virginia and on day one, she moved hard left. And Virginians don't like it. I mean, she has the lowest approval ratings of any governor in modern time in Virginia because it was a bait and switch. And that's what we're going to see out of these far left candidates who then try to pretend that they're moderate so they can get elected. And then they're going to turn around and govern, just like he has said over and over again. And we're going to see, we're going to see Francesca Hong nominated on Monday or Tuesday in Wisconsin as a governor's candidate and she wants to get rid of Thanksgiving. I mean, come on. This stuff is really, really crazy stuff. And I think it's a chance for Americans, Republicans, Independents and Democrats, Democrats to come together and say, we're going to stand for the basic belief system of this nation. We're going to disagree on things, we're allowed to disagree on things, and we can disagree without being disagreeable all the time. But we have to stand for the principles that make America America and not let the socialists actually take over, not just the Democrat Party, but the America.

[Joe Matthew]

Well, thank you for weighing in on that. You know, we're just playing with you

[Glenn Youngkin]

on the No, I know.

[Joe Matthew]

It's good to see you. Stay in touch with us throughout this midterm cycle and let us know how the program's going with the remaining 20 states. That's, of course, Glenn Youngkin, the former governor of Virginia.

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[Kailey Leinz]

right now are elf ears.

[Glenn Youngkin]

Elf ears? Yes. People are getting injections to enhance their ears.

[Kailey Leinz]

I really don't need anything else to learn to be self conscious about. This is not something I needed to have on my radar.

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[Glenn Youngkin]

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[Glenn Youngkin]

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