New bill would block scholarship money for students

Illinois lawmakers have introduced a bill that would prohibit Illinois students from receiving private funds for tutoring and other academic needs – even though it would cost the state nothing.

A new federal program will allow individuals to get an annual tax credit for donating funds for education, but Illinois students can access the money only if the state opts in.

Some lawmakers have proposed legislation that would prevent students from getting that much-needed help.

Senate Bill 3966 would prohibit Illinois from opting into the Federal Scholarship Tax Credit program, which provides privately-donated funds for tutoring, fees for dual enrollment, educational therapies for students with disabilities and other academic needs.

While the bill would deny money for Illinois students, the federal tax credit to donors would not be affected. Donors could still benefit from the tax credit by simply donating to students in other states.

At least 28 states have already taken steps to opt into the program, seeing it as a boon for their students’ education.

The backers of SB 3966 seem to be buying into myths spread by the program’s opponents.

Here’s what the Federal Scholarship Tax Credit program could mean for Illinois students and families:

1) The scholarships benefit public and private school students

Starting in 2027, the scholarship funds can be used by students in public or private schools for educational services such as tutoring, additional educational classes, books or online educational materials, fees for standardized or college admissions exams and fees for dual enrollment.

That means public school students who may be struggling in certain academic areas or needing extra help or materials won’t have to leave their local public school for the support or opportunities they need.

The program is good news for struggling Illinois students. Recent state test scores show just half of students in third- through eighth-graders read at grade level in spring 2025, and just 39% were proficient in math. The scholarship program offers families a way to provide the additional academic support children need.

2) Scholarships take no money from public schools

The program will not divert federal or state money from public schools to fund the scholarships. There is no cost to states — only the benefit of more help for students.

The only cost to the federal government is minimal forgone income tax revenue. The scholarships are donated by taxpayers, who will get an annual dollar-for-dollar federal tax credit of up to $1,700 for a qualified contribution to a scholarship-granting organization. That limited credit will matter little to a billionaire but can encourage donations from middle-income taxpayers.

3) Illinois taxpayers will get the tax credit no matter what, so rejecting the program only deprives kids

If Illinois fails to opt into the federal scholarship program, its residents can still obtain the tax credit by donating to a scholarship granting organization. But that money would go to another state.

No Illinois students would be eligible for the funds.

It’s not a good look for teachers unions or other opponents of the federal scholarships, who falsely say the program takes money from public education. The program promises to add money from donors to address public, private and homeschool students’ needs.

If opponents succeed, other states’ children will benefit and Illinois children will be left behind.

4) The scholarships provide additional resources to students with disabilities

The funds can be used for educational therapies for students with disabilities enrolled in the public school system or in a private or homeschool.

Most students with disabilities enroll in public schools. In the 2024-2025 school year, nearly 375,000 students with disabilities were enrolled in Illinois public schools.

Nationally, 95% of school-aged students with disabilities were enrolled in regular public schools in fall 2022, according to the National Center for Education Statistics. Only 2% were placed in regular private schools by their parents.

Families could gain access to funds for additional educational therapies to help their children thrive in their public schools.

5) The funds would help Illinois students stay competitive with students in other states

Illinois shouldn’t put its students further behind other states by denying families donated scholarship funds. If Gov. J.B. Pritzker opts the state in to the program, it will give Illinois the opportunity to join the majority of states who have already opted into the program – at no cost to Illinois.

The bottom line: The tax credit is federal and will go into effect no matter what Illinois leaders decide. The question is whether Illinois will opt into the scholarship-receiving portion of the program.

If the sponsors of SB 3966 have their way, Illinois school children will be left out.