Many people are unaware that in July 2025, Congress passed a new Federal Scholarship Tax Credit Program that will begin this January. The optional program is available for states where governors select to opt in. If Massachusetts participates, children in grades K-12 across the Commonwealth (public and private school students) will benefit from a variety of educational resources and services that would be fully funded through individual federal tax donations. Through this unique program, taxpayers may choose to donate up to $1,700 to an approved Scholarship Granting Organization (SGO) of their choice and receive a full dollar-for-dollar federal tax credit. SGOs will use the donated funds to support students with family incomes below 300 percent of Massachusetts's median income, with tutoring, after-school care, transportation, books, tuition, technology, hearing equipment, speech services, and much more. There are no public funds involved or impacted; most Massachusetts families would qualify, and multiple scholarship-granting organizations with links to numerous educational programs would be established.

At a time when families are feeling the economic pinch, and in a state where education is deeply valued, this program is a win for Massachusetts. It does not reduce federal education funding, and it doesn't impact Massachusetts investments in public education, By opting in, Massachusetts students could have access to an estimated $2.2 billion in new educational resources and services. If Massachusetts does not opt in, resident taxpayers could still invest in the program in other states. We would prefer to see the citizens of Massachusetts donate their federal tax liability to benefit the worthy children right here in the Commonwealth.

Why would a program like this be considered controversial? Some folks are unhappy that Catholic and other nonpublic school children are allowed to participate. They are falsely stating that public schools would be "defunded." Public schools are not defunded when states offer this program to their families. Income-eligible, public-school children with families who struggle to pay for transportation, after-school care, or tutoring, etc., would have equal access to these programs. Those of us in Catholic education appreciate our public-school partners. We fully support investment in the public school system because we believe that every child should have access to quality education regardless of where they attend school.

Many children in Catholic schools and other nonpublic schools also struggle to afford a tutor, transportation, and after-school care. Children in faith-based schools often don't have access to special education services due to Massachusetts's Blaine Amendment, which doesn't allow state-funded IEP services in private schools. The Federal Scholarship Tax Credit Program will help to provide access to those educational services. It will also help students who need assistance with their tuition. The Catholic Schools Foundation (CSF) has been investing in children's futures for years by offering scholarships to children who attend Catholic schools and don't have the means to pay the full cost. Contributions to the CSF have transformed lives by providing low-income students with the gift of a Catholic education. The Federal Tax Scholarship Program could allow CSF to increase their support to deserving children who attend Catholic schools if they are approved as a FSTCP SGO.

What we know about the Federal Scholarship Tax Credit Program:

-- 90 percent of students in the Commonwealth would be eligible for a scholarship to be used for allowable educational resources (based on income estimates).

-- Individuals will essentially decide how (but not for whom) their donated funds are used by selecting the approved SGO of their choice.

-- Massachusetts students will have expanded access to educational resources without placing an additional strain on the Commonwealth's budget.

The Federal Scholarship Tax Credit Program will help Massachusetts Families. Folks from Massachusetts know how to care for children, and this program will offer a new avenue for improving student outcomes. To share your support for the Federal Tax Credit Scholarship Program, call Gov. Maura Healey at 617-725-4005



MARY GOSLIN IS ASSOCIATE SUPERINTENDENT OF GOVERNMENT PROGRAMS OF THE CATHOLIC SCHOOLS OFFICE OF THE ARCHDIOCESE OF BOSTON.