Most states already say ‘yes’ to donations for students

At least 28 states have already said they plan to opt into the Federal Scholarship Tax Credit program to let donors provide extra academic help to their students.

More than half of the nation’s states have already decided they want to let private donors help students in public, private and homeschools find extra academic help.

“The more Democratic governors learn about it, I fully expect that most will come around and participate,” said Colorado Gov. Jared Polis. “Because from our perspective, it’s free money.”

Polis said he plans to opt Colorado into the Federal Scholarship Tax Credit program, calling it a no-brainer.

Illinois Gov. J.B. Pritzker remains undecided about opting into the program.

The Federal Scholarship Tax Credit program will offer donors a tax credit and offer students funds for tutoring, fees for dual enrollment, educational therapies for students with disabilities and other academic needs. Donors in every state get the tax credit, but each state must allow its students to accept the donations.

The key aspects of the program are clear from the statutory language:

• All K-12 students are eligible for funds if their household income is at or below 300% of the median income level in their area.
• “Qualified elementary and secondary education expenses” is defined to include tutoring, special needs services, books, supplies, tuition and more for students at public, private or home schools.
• No state or federal funds are used. All funding is from donors.
• Funding is dependent on state action: States must opt in for their students to get funds.
• The tax credit is a done deal: Donors can get an annual $1,700 tax credit even if their states don’t opt into the program.

Pritzker has until Jan. 1, 2027, to let Illinois join and let Illinois students benefit from the donated funds.