What if I told you that in 2027 and beyond, there could be up to $1 billion more dollars spent on K-12 education in Pennsylvania?
What if you knew that it wouldn’t cost taxpayers anything out of pocket (unless you freely chose to contribute)?
What if I can all but guarantee that none of this money will be wasted on a failing or unsafe school, and every dollar spent will be used to help a child from a poor or working-class family to attend a school that the child’s parents/guardians choose?
Does it sound too good to be true? Well, it’s now federal law – part of the “Big, Beautiful Bill.”
This new federal law is modeled after Pennsylvania’s law that’s worked for 25 years – the Education Improvement Tax Credit. EITC is so popular that approximately 100,000 students will be helped this year. Without that program, many if not all, of those students would not be able to attend the school that they’re presently attending – that their parents chose – because their families cannot afford the tuition.
However, the program is so popular and so very much needed that – though 100,000 students are being helped – there are up to 90,000 students whose parents also wanted scholarships, but the money ran out.
That’s one of the many reasons this new federal law – the Federal Scholarship Tax Credit – was passed into law. One of its co-sponsors and champions is U.S. Senator Dave McCormick.
How would it work? Like Pennsylvania’s program, individuals could make a charitable donation to one of 252 registered and regulated non-profit education Pennsylvania scholarship organizations. Then, those scholarship organizations would award scholarships to income-qualified applicants.
You may be familiar with organizations such as BLOCS, Children’s Scholarship Fund Philadelphia, Foundation for Catholic Education, or The Foundation for Jewish Day Schools.
Donors now get a tax credit toward their state taxes owed – and could get a credit for their federal taxes owed. This is similar to donations to other charities, such as the American Cancer Society or St. Jude’s Children’s Hospital, or similar to getting a tax credit for making improvements to your home to save energy.
Why do I use words like “could” and “would,” rather than “will”?
Well, there’s a catch – not a financial catch. Frankly, we all benefit every time a child finds a school that works for him/her, especially if he/she is transferring out of a failing and/or unsafe school.
Here’s the catch. Politics being politics, the new federal law requires that each state opts-in to this program.
In other words, the governor would have to notify the federal government that Pennsylvania wants to participate.
Gov. Shapiro has to say “yes” before December 31, 2026.
To date, 27 states have said yes. Pennsylvania is one of the 20 states that has not, yet, said yes, or no (3 have said “no.”).
If Gov. Shapiro opts-in, starting in 2027, each taxpayer is permitted to donate up to $1,700 and receive a tax credit towards his/her federal taxes owed ($3400/married couples).
However, if Shapiro does not opt-in, Pennsylvanians could still make charitable donations to scholarship organizations in another state that has opted-in.
If Shapiro rejects the program to help poor and working-class Pennsylvania students, some would-be Pennsylvania donors will just make their donation out of state – one’s alma mater, or a niece’s or grandson’s school. Some won’t donate at all. Either way, Pennsylvania students lose –and so will Pennsylvania residents. Every time a child gets to attend a school that his/her parents choose, we all win. Every time a child is forced to attend a failing and/or unsafe school, because his/her parents can’t afford to move or pay tuition to a non-public school, we all lose.
Why would Shapiro say “no,” opposing free money to help poor and working-class families find a school that works, using this new federal program modeled after Pennsylvania’s 25-year-old overwhelmingly popular program?
It’s because of the teacher’s union (and their allies, in addition to presidential politics).
They oppose all forms of school choice from charter schools to home schooling to vouchers and tax credits. (By the way, there are nearly 1,000 other non-profit education organizations supporting public school students and other causes like local libraries, tutoring, and learning trades that could benefit.)
Despite this, the teachers’ union and friends argue their tired, inaccurate, selfish chants: this voluntary, charitable program “takes money away” from public schools.
That’s like saying charitable donations to the American Cancer Society “takes money away” from police officers, or that donations to the SPCA “takes money away” from AIDS research.
The union opposes choice, despite the fact that a huge number of teachers send their kids to Catholic, charter, or private schools, or move to “good districts.” Their members need students to be held captive in failing public schools to protect their ranks.
Democrats for Education Reform’s national president, Jorge Elorza, was in Philadelphia to urge Shapiro to opt-in. He makes the case that if 30% of Pennsylvanians participate, up to $1 billion could be raised for these deserving students – even $30 million with only 1%.
“There is truly no reason why you wouldn’t want to do this.”
Governor, don’t take my word for it: listen to Jorge. Say yes.