USCCB praises federal scholarship tax credit as ‘transformative opportunity’ for children
Bishop David O’Connell said the program will help parents choose the tools and learning environment best suited to their children’s needs.
The chairman of the United States Conference of Catholic Bishops’ (USCCB) Committee on Catholic Education welcomed proposed rules for a new federal tax credit Oct. 2, saying the program could expand education options for families across the country.
Bishop David O’Connell called the Federal Scholarship Tax Credit a “transformative opportunity for children across the country in both public and non-public school settings.”
“The Catholic Church teaches that parents are the first and primary educators of our children, and that parents have the obligation of educating their children in the manner best suited for their development and needs,” the bishop said. “The Federal Scholarship Tax Credit will create opportunities for families to access much-needed resources to expand their options for choosing the best tools and learning environment for their children.”
Bishop O’Connell also praised the advocates, lawmakers, and Treasury Department officials who worked on the law and its proposed implementing rules.
Beginning Jan. 1, 2027, eligible taxpayers can claim a dollar-for-dollar federal income tax credit for donating to approved scholarship granting organizations (SGOs). Those organizations would use the donations to fund scholarships for eligible K-12 students, covering private-school tuition, books, supplies, tutoring, special-needs services, and other qualifying education expenses.
States must formally opt into the program for children in their state to receive the scholarships. Donors, however, may support eligible SGOs in participating states regardless of where they live.
Under the proposed rules, each individual could claim up to $1,700 annually, with each spouse qualifying for a separate credit based on their own contributions, allowing up to $3,400 on a joint return. The Treasury Department released the proposed rules Oct. 1, drawing praise from school choice advocates and resolving concerns that married couples filing a joint return would be limited to a single credit.
>> Married couples can claim $3,400 school scholarship tax credit under new Treasury rules <<
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