In the near future, we plan to introduce legislation that would ensure Pennsylvania families and parents can benefit from new educational resources offered by the federal government through the Federal Scholarship Tax Credit.
 
Under federal law, every state is eligible to receive this new funding. However, states are required to opt into the federal program in order to participate. Governor Shapiro has not yet committed to participating in the program, risking millions of dollars in new funding that could benefit Pennsylvania families.
 
Specifically, the federal Working Families Tax Cuts Act establishes a new federal tax credit of up to $1,700 for contributions made by an individual who is a citizen or resident of one of the states or the District of Columbia, to Scholarship Granting Organizations (SGOs). SGOs are non-profits that accept qualified contributions from individuals and use the funds to provide scholarships for education-related services at private or public schools, including tuition, fees, academic tutoring, special education services, technology services, and classroom supplies.
 
Across the Commonwealth, there are a number of school districts who have cut or terminated some of these described services and programs. Public schools would be able to use this funding to help support or restore these types of services and programs.
 
According to the Internal Revenue Service, 30 states across the U.S. have already opted into the program meaning students and families in those states will be eligible to benefit from this transformative program, which will lower costs for parents and families, whether they choose to use these resources to send their child to a new school, pay for private tutoring, or provide other education supports.
 
The Federal Scholarship Tax Credit will become available for contributions made on or after January 1, 2027. Pennsylvania taxpayers will be able to contribute to this federal program, but our students will only be able to access the scholarships if we opt in. If Pennsylvania does not act, these dollars will be sent to other states, bypassing Pennsylvania students. 
 
Please join us in co-sponsoring this legislation to ensure our students and families are able to benefit from this important opportunity.