The Trump administration announced Tuesday that 23 states have formally opted in to the Federal Scholarship Tax Credit, a key school-choice initiative that could dramatically assist with tuition for private Jewish schools nationwide.
The milestone brings the program within reach of nearly half the country, administration officials said, with additional states — including Colorado — publicly signaling their intent to participate.
The Federal Scholarship Tax Credit was enacted as part of the Working Families Tax Cuts Act, which President Donald Trump signed into law on July 4, 2025. The program is scheduled to take effect in 2027 and is designed to incentivize private donations to nonprofit scholarship organizations that fund K-12 education options outside traditional public schools.
Under the law, individual taxpayers will be able to donate to approved Scholarship Granting Organizations, or SGOs, and receive a dollar-for-dollar federal tax credit of up to $1,700. Those organizations will then pool contributions and distribute scholarships to eligible students to cover a broad range of education-related expenses, including private school tuition.
Participation, however, hinges on state cooperation. For SGOs to be approved, states must formally opt in and submit a list of eligible organizations to the Treasury Department, giving governors and state administrations a gatekeeping role in determining whether residents can access the benefit.
“Today’s announcement brings the Federal Scholarship Tax Credit closer to reality for families,” said Rabbi A. D. Motzen, Agudath Israel of America’s national director of government affairs. “Every state that opts in means more families gaining access to real educational choices for their children.”
Motzen said Agudath Israel and allied groups will continue lobbying governors in non-participating states to join the program.
The rollout comes as education policy remains a central fault line in Washington and the states, with Republicans pushing to expand private-school options and Democrats warning that tax-credit programs could divert resources from public schools.
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2 Responses
This is mainly funded by the federal government. $1,700 limit per donor make this credit not so desirable. We are going to need about ten donors per receipt. I don’t think that exists.
As much as I’d like to praise the bill, it offers little to zero hep for the average Frum Jew. $1700 is hardly a fraction of school cost, but besides that, you have to jump thru multiple hoops to get the credit….and that’s even if you qualify for the credit based on household income, which many people don’t (earn too much). It’s more of another “benefit” for those not paying full tuition or any tuition. To begin with (based on income qualifications for the credit). Once again the real middle class is squeezed out.