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Feds release school voucher tax credit rules Pritzker said he was waiting for

Thursday, Oct 1, 2026 - Posted by Isabel Miller

* The Washington Post…

The Trump administration took a major step Thursday toward launching the nation’s first federally funded school voucher program, set to steer billions of tax dollars to private schools — but also, perhaps, to public school students.

The Treasury Department released long-awaited rules that will govern the first-of-its-kind effort before it’s implemented in January. States must decide whether to participate, and many Democratic governors had said they would wait for the regulations before making a decision. […]

The voucher-like program, called the Federal Scholarship Tax Credit, was created by last year’s giant Republican tax and spending bill. It provides a 100 percent tax credit for donations to scholarship-granting organizations (SGOs), which will pass along the money to families. It was designed to primarily benefit students attending private schools, but SGOs may also be set up to help pay out-of-pocket expenses for public school students, further complicating the politics for Democrats.

Governors have until Jan. 1 to opt in. Thirty mostly Republican-led states have already joined. Most of the remaining states that have not rejected the plan are led by Democrats.

In January, Gov. JB Pritzker blamed the lack of federal rules for not acting on the tax credit. I’ve asked his office for comment and will update when I hear back.

* Education Week…

During a call with reporters Wednesday afternoon, Treasury and Education department officials previewed the regulations and offered some answers to outstanding questions on the program’s operations.

States, for example, won’t be allowed to block certain types of scholarship-granting organizations, or SGOs, from accepting tax credit-eligible donations, or dictate to whom SGOs direct funds. Some Democratic policymakers have sought to allow only SGOs that give out scholarships to public school students or students from low-income families, as well as impose antidiscrimination and academic accountability requirements on SGOs and the schools and organizations that accept scholarship money.

Children from low-income families who already participate in public benefit programs or school-based tutoring programs will be automatically eligible to receive scholarships. And annual independent audits of SGOs will be required.

The regulations—which are open for public comment today through the end of November—also pave the way for scholarship-granting organizations to operate in multiple states, according to a news release announcing the regulations. […]

[Officials] also emphasized that public school students can benefit—echoing a call from advocates in recent months for K-12 districts to pay attention to the program and position themselves to take advantage of potential new funding.

Thoughts?

       

5 Comments »
  1. - It's always Sunny in Illinois - Thursday, Oct 1, 26 @ 12:52 pm:

    This cake was baked by Stacy Davis Gates the day it was announced…..No way JB Pritzker going to opt Illinois into the program


  2. - Future Arthur Spooner - Thursday, Oct 1, 26 @ 1:13 pm:

    Illinois taxpayers will be participating in the federal tax program. Let’s keep those education dollars in IllinoIs and hope the Governor doesn’t let politics get in the way.


  3. - Candy Dogood - Thursday, Oct 1, 26 @ 1:17 pm:

    ===It provides a 100 percent tax credit for donations to scholarship-granting organizations (SGOs)===

    Not a write off, a credit. So someone who owes the feds $10,000 in taxes can instead give $10,000 to their local Christian Nationalist Day Camp where children are taught that dinosaurs lived alongside humans until the great flood happened and have zero federal tax liability.

    This does not seem very fiscally conservative of very responsible.

    Get a load of what has already happened in Iowa with our neighbors version of using public funds to support the religious schools with little or no oversight.


  4. - Candy Dogood - Thursday, Oct 1, 26 @ 1:23 pm:

    === Let’s keep those education dollars in IllinoIs and hope the Governor doesn’t let politics get in the way. ===

    By not opting in, Illinois is not creating a market for grifters to set up shop in the State of Illinois with their “schools that aren’t really schools” educational model and would prevent harm to children who would be enrolled in these not really a schools and not incentivizing existing organizations who are not prepared or equip to operate a school to give it a try for ‘free money.’

    We’re also sparing some would be criminals of the opportunity to commit crimes related to the misuse of funds.


  5. - Demmm - Thursday, Oct 1, 26 @ 1:29 pm:

    Good luck running in the Democratic primary for President if you support vouchers.


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