What to know about the Federal Scholarship Tax Credit program
PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE
CONTACT: Micky Horstman (312) 607-4977
Polls open: 32 Illinois counties see education question on March primary ballot
What to know about the Federal Scholarship Tax Credit program
CHICAGO (Feb. 5, 2026) – Early voting begins in Illinois today for the March 17 primary election, with voters in 32 Illinois counties seeing a non-binding advisory question on whether Illinois should let its students benefit from the Federal Scholarship Tax Credit program.
Illinois Policy Institute research found over 1.9 million residents will have an opportunity to tell Gov. J.B. Pritzker whether they think the state’s students should receive financial help from donors, who are encouraged to support education through the new federal tax credit. Illinois donors will get the credit regardless of Pritzker’s decision, but Illinois students won’t receive that help unless he acts.
What to know about Federal Scholarship Tax Credit:
- 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. Students attending public, private, religious or home schools are eligible in Illinois.
- Funds can be used for “qualified elementary and secondary education expenses,” which have been defined to include tutoring, special-needs services, books, supplies, tuition and more. Scholarship granting organizations will be charged with administering funds and more guidance will be provided by the U.S. Department of the Treasury.
- The federal scholarships are not a voucher program. No funding will be diverted from Illinois public schools.
- The tax credit is a done deal: Donors can get an annual $1,700 tax credit starting in 2027, even if their states don’t opt into the program. If Illinois doesn’t opt-in, donations made by Illinois taxpayers will go towards educating and supporting students in other states.
- At least 28 other states have taken steps to opt in to the program. Pritzker has not yet indicated if he’ll allow donated funds to go to Illinois students.
The results of these advisory questions may be examined by state leaders to inform decisions about whether to get involved in the program.
“This is something students in counties all over Illinois could benefit from. This program helps students at or below 300% of the median income level in their area, which means all low-income children in the state would be eligible for funding. It’s a win-win-win program: students get money, taxpayers get a tax credit, and it boosts academics at public schools, private schools and homeschools. There are nearly as many reasons why Gov. Pritzker should join as there are students in Illinois,” said Mailee Smith, vice president of policy and litigation at the Illinois Policy Institute.
To learn more about the Federal Scholarship Tax Credit, visit illin.is/FSTC.
For bookings or interviews, contact media@illinoispolicy.org or (312) 607-4977.