Did you know a new federal tax credit could support students in both public and private schools, helping families with expenses ranging from private school tuition to academic tutoring, college-admission testing and services for students with disabilities?
Beginning in 2027, the Federal Scholarship Tax Credit, also known as the Education Freedom Tax Credit, allows individuals to claim a federal tax credit of up to $1,700, or $3,400 for married couples filing jointly, for qualifying cash contributions to approved Scholarship Granting Organizations (SGOs). These organizations award scholarships for qualifying K–12 educational expenses at public, private and religious schools. The program will only be available through organizations in states that opt in.
Here are three reasons New Jersey should participate.
1. It could bring additional scholarship resources to New Jersey students.
New Jersey families face different educational needs and financial circumstances. Additional scholarship resources could help eligible families access tuition assistance or pay for qualifying educational services that support their children’s learning. Supporters estimate that the program could generate substantial resources for New Jersey students. One estimate suggests that if 15% of New Jersey taxpayers contributed the maximum amount, the program could generate as much as $750 million for K–12 education in the state in its first year. The actual amount would depend on taxpayer participation and contributions to eligible scholarship organizations.
If New Jersey opts out, residents could still claim the federal credit by contributing to eligible SGOs in participating states. That means scholarship contributions from New Jersey taxpayers could support students elsewhere, rather than students in their own communities.
Importantly, the credit does not take funding from New Jersey’s state or local public school budgets. The program creates a separate federal tax incentive for contributions to eligible scholarship organizations rather than redirecting money already allocated to public schools.
2. Students benefit when educational opportunities meet their needs.
Not every student succeeds in the same educational setting, and families should have opportunities to find the right fit for their children. At St. Benedict’s Prep in Newark, we have seen students find their footing in a close-knit school community built around student leadership, personal responsibility, emotional support and experiential learning.
Our commitment to access is reflected in the fact that more than 85% of our Middle and Prep Division students receive financial assistance. Philanthropy already plays a central role in making a Benedict’s education accessible. Additional scholarship resources could help sustain and expand that commitment, giving more eligible students the opportunity to benefit from an educational experience that meets their needs.
3. New Jersey can help shape how these resources reach students.
Concerns about equity and the financial pressures facing public schools deserve serious consideration. Opting in does not automatically guarantee that scholarship dollars will reach every community equitably, nor does it resolve every concern about public-school funding. But participation would give New Jersey an established network of scholarship granting organizations and help make these resources available to eligible students in the state, both public and private.
The question is not whether every student should follow the same educational path. It is whether families should have access to a range of opportunities and services that help their children succeed.
New Jersey has an opportunity to make additional scholarship resources available to its students beginning in 2027. We urge Governor Sherrill to opt in and ensure that eligible New Jersey families have the opportunity to benefit.
Michael A. Fazio is the Chief Advancement Officer at St. Benedict’s Prep.
