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* Forbes…
A provision in the One Big Beautiful Bill Act, recently signed into law by President Trump, will create the country’s first federal tax credit for donations to private schools. It aims to give families more choice in their child’s education, but critics warn it could divert much-needed funds from public schools and widen inequalities.
Benefits will come in the form of a tax credit, but the exact procedure is a little convoluted, considering the program was formed as a way to encourage donations to education non-profits.
Eligible American taxpayers who earn up to 300% of their area’s median income can donate up to $1,700 to an eligible educational non-profit and receive a dollar-for-dollar tax credit. The donation would be awarded in the form of a scholarship by private schools to fund tuition, boarding, books, and other expenses for students.
States must opt in to the tax credit, so it may not be available everywhere.
Illinois let the Invest in Kids Act program sunset in 2023, ending income tax credits for donations to private school scholarship funds.
Illinois state Sen. Andrew Chesney said it’s a simple administrative step for a state to participate. […]
In a statement about claims the law’s impact will have on Illinois education, Pritzker’s office said the scholarship program could impact funding for public schools.
“Creating a new tax credit refund that benefits private school donors who pay for tuition vouchers, potentially reducing state and federal funding for public schools that experience a decline in student enrollment,” Pritzker’s office said in a statement along with other criticism of the federal law. […]
Chesney pushed back.
“Has no impact on the funding for public schools. He knows that. We all know it,” Chesney said. “He just has an interest, a political interest in not liking it.”
* The Question: Do you think Illinois should opt in to the new federal private school tax credit program? Make sure to explain your answer.
posted by Isabel Miller
Tuesday, Jul 15, 25 @ 9:56 am
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This has always been about state funding for religious schools, so I’m a no vote. Seems like a lost cause at this point, though.
Comment by Friendly Bob Adams Tuesday, Jul 15, 25 @ 10:04 am
Absolutely should. There was clear public support for the Illinois program.
It doesn’t cost the state anything.
Governor for Everyone, right?
Comment by JB13 Tuesday, Jul 15, 25 @ 10:09 am
Illinois used to have its own tuition tax credit for private schools. It was allowed to sunset.
Dozens of religious schools in Chicago closed subsequently. Many of the houses of worship also closed after these schools shut down.
I do not accept the false premise that parents who enroll their children in private schools are cheating the public school system of needed tax dollars.
Families deserve choices in terms of schools.
Comment by Parochial School Grad Tuesday, Jul 15, 25 @ 10:12 am
100% yes.
Comment by Paddyrollingstone Tuesday, Jul 15, 25 @ 10:21 am
First and foremost, families already have “school choice”: no one is stopping anyone from sending their kids to parochial/private schools right now. The “choice” conversation comes down to whether or not taxpayers, who are already paying into our public schools regardless if they have kids attending (or at all) should be helping subsidize that choice.
To that effect, in my opinion it depends on rather the federal tax credit is above the line (lowering AGI) or below the line (lowering federal taxes paid). If it’s the latter, the only hit to Illinois would be attendance-based formula funds, which may be far enough downstream as to not have a major impact. If it’s the former though, we could be more directly hit since that also impacts how income taxes are calculated.
Comment by Sterling Tuesday, Jul 15, 25 @ 10:23 am
1. This is federal taxes, so what is the downside to opting in. There is no required state match. There is no reduction in Federal education money because a State opts in or receives these donations.
2. If you look at the bill, the money could be used for anything that a Coverdell account can be used for, so that could in theory include tutoring for public school kids.
Comment by Unionman Tuesday, Jul 15, 25 @ 10:25 am
It’s short-sighted and pointlessly cruel when red states opt out of Medicaid expansion for political reasons. It would be equally short-sighted and pointlessly cruel for Illinois to opt out of this program.
Comment by Garfield Ridge Guy Tuesday, Jul 15, 25 @ 10:26 am
No.
But some states will no doubt opt-in.
The Church of Satan should open up private schools in every state.
Next, also run local ads in each heavily red state before the opt-in takes place, stating the republican governor of xyz state wants to give tax credits to muslim schools.
Make the supporters of this openly admit the purpose is only for their specific private religious schools, and not everybodies.
Then ask why there isn’t a similar tax credit for local property taxes paid to public schools in the same way. The Andrew Chesneys of the world like to pretend to care about property taxes, so this should be an easy one for him - right?
As a local bonus, this would give Chesney a mirror to face his own reflection;
“He just has an interest, a political interest in not liking it.”
Comment by TheInvisibleMan Tuesday, Jul 15, 25 @ 10:30 am
Illinois should opt-in. There is no downside as it is all federal money. Theoretically, if this draws more kids into private schools, there will be more money per pupil in public school.
If you read the credit provision, this benefits lower and middle class children (
Comment by Mr. Middleground Tuesday, Jul 15, 25 @ 10:33 am
What FAB said x2.
Comment by Huh? Tuesday, Jul 15, 25 @ 10:34 am
I went to Catholic schools, grammar school, high school and college. As did my sibs. I never heard my parents complain about paying tuition or the fact that they paid taxes to schools we did not attend. I am predisposed to be against this. However after seeing recent Supreme Court decisions that essentially approve religious schools in the guise of public schools- parents get ” input” that is dictate what can be taught and the Ten Commandants must be posted I am having trouble distinguishing public from private.
Also reading about ghost schools in CPS that operate with with so few students for reasons I cannot fathom, it makes it very hard to support public schools right now.
and more money to some public schools is simply more money down the drain.
However I don’t like more tax breaks to upper income taxpayers.
Where does that leave me, I guess I am opposed, but it’s really hard to support public schools right now.
Comment by Banish Misfortune Tuesday, Jul 15, 25 @ 10:36 am
Chesney’s interest is also political. He’s just appealing to far right wing religious leaders. As far as privates closing, the pandemic hurt far worse than the loss of the tax credit.
Comment by Stephenson County Tuesday, Jul 15, 25 @ 10:37 am
Don’t have a problem with it. I don’t really see where a tax credit is going to have that large of an impact on public school funding, especially if it’s below the line. The local school district accounts for 64% of my property tax bill and scores significantly below the state averages on science, math, ela, graduation rates, post secondary enrollment.
Comment by Notorious JMB Tuesday, Jul 15, 25 @ 10:48 am
I think Illinois should opt in: but I doubt they will. The voters didn’t mind sunsetting of the Illinois program. The Illinois voters like what the teachers unions want. The teachers unions don’t want this. Illinois really is different from other states. It’s their right. That’s federalism.
Comment by Steve Tuesday, Jul 15, 25 @ 10:52 am
Personally I’m going to be pretty annoyed if Illinois doesn’t let families making under $225,000 (or so) pick up a $1700 Federal tax credit if they donate to a non-profit/private school.
It’s dumb when red states opt out of Federal match programs for health care. It would be dumb if a blue state doesn’t opt in to allow whoever wants it to take a Federal tax credit.
Thought Spiteful up there has some interesting points about how much will depend on how the Federal credit is implemented.
Comment by ChicagoBars Tuesday, Jul 15, 25 @ 11:12 am
Hard No. Private schools should not receive public funding. That used to be a common belief regardless of politics and of course (my parents sent me and my brother to catholic schools and never complained), people used to have a real understanding of the constitution.
However, if private schools receive public funding they should be subject to the same rules as other publicly funded schools as they are now defacto public schools. There is no legitimate argument to the contrary right?
=Families deserve choices in terms of schools.=
This is a long standing canard. They have choices, as many as they want.
Comment by JS Mill Tuesday, Jul 15, 25 @ 11:15 am
Yes. I’m almost always for paying less Federal taxes and I see no harm in this credit being taken by Illinoisians.
Comment by Lurker Tuesday, Jul 15, 25 @ 11:16 am
=== no one is stopping anyone from sending their kids to parochial/private schools right now. ===
This ignores the financial barriers that many families have to sending their child to a parochial school. If we are being honest, there are many parents that would like to send their kid to a parochial school, but cannot afford the tuition.
You may be fine with that result, but you have to acknowledge that there will be some children harmed by this because they will be forced to attend their failing local public school instead of going to a school that would provide an environment much more conducive to learning.
Comment by Remember the Alamo II Tuesday, Jul 15, 25 @ 11:18 am
@Banish Misfortune
“I never heard my parents complain about paying tuition”
If you are around my age, and I also attended Catholic grade schools, your parents probably weren’t complaining because back then the Catholic Church was practically paying the full cost of providing education. Tuition wasn’t meant to fund the entire school like it is today. It was part of the push after Vatican II to grow the footprint of the church in communities.
It wasn’t until the 90s when the church pulled back funding and instead placed the operational cost burden more on individual tuition. In the 80s, tuition might have been a few hundred dollars. Today, it can be tens of thousands of dollars. The local Catholic HS tuition near me is currently over 14k per year.
Comment by TheInvisibleMan Tuesday, Jul 15, 25 @ 11:18 am
I’m for opting in. As has been said, opting out of a program that allows federal dollars to roll into the state is ludicrous. I must say, it was genius of the Senate GOP folks to include the opt in clause. Now “school choice” becomes a state issue for blue states, and is one that is generally a loser for Dems.
It might be considered that if fewer students go to public schools and more go to private schools (on the federal tax dime), that this will allow the state to allocate more money per public school student. It certainly will save local districts money or at least allow them to allocate more funding per student if fewer students are attending public schools.
Comment by School Guy Tuesday, Jul 15, 25 @ 11:20 am
Invisible, fair comment. But there were 10 of us. And he had kids in school in the 50s, 60s, 70s, 80s and 90s…
Comment by Banish Misfortune Tuesday, Jul 15, 25 @ 11:38 am
If public schools are so bad, why aren’t we having a conversation about fixing them instead of shifting public funds to private hands
Comment by NobodyAskedMe Tuesday, Jul 15, 25 @ 11:38 am
=This ignores the financial barriers that many families have to sending their child to a parochial school.=
Yeah, funny how “private” schools cost money too. That is why we have public schools. Students can attend those without paying tuition.
Comment by JS Mill Tuesday, Jul 15, 25 @ 11:46 am
Can I also get a credit for the portion of the property taxes I’m forced to cover for the private schools & churches? Can I donate $1700 to our public schools and get a credit?
We should opt in because it’s available. But it’s BS and I’ll be happy to see it go away.
Comment by WindyCityGigi Tuesday, Jul 15, 25 @ 11:46 am
No. Any way you slice it this is diverting tax dollars to private schools.
- There was clear public support for the Illinois program. -
Show me the numbers.
Comment by Excitable Boy Tuesday, Jul 15, 25 @ 12:14 pm
No. This is another attempt to backdoor public resources to fund elitist private schools (no “problem” or “challenged” students).
Comment by Anyone Remember Tuesday, Jul 15, 25 @ 12:34 pm
We should opt in. The thought that this would hurt public education is nonsense.
For what it’s worth, private school enrollment boomed during the pandemic. Fewer restrictions, in-person classes, and no teachers doing lessons from the beach.
Also, to IM, I would be all for a tax credit on my property taxes if I don’t utilize the public schools, but still pay for them.
Education is about 70% of my property tax bill.
If I’m paying money towards resources I don’t use, and can get a credit, I’m in.
Can I get a credit for a 3% compounded COLA in Illinois? Or no taxing of pensions? All of which I pay for in my taxes. Be all for that as well. Thanks Big Jim.
Comment by Frida's Boss Tuesday, Jul 15, 25 @ 12:42 pm
Catholic school kid here, from Kindergarten to Undergrad, and I don’t support this. Is wrong to say that it won’t harm public schools since they receive funding based on students butts in desks. A student diverted to a private school is money lost by the public.
Comment by Chito Tuesday, Jul 15, 25 @ 12:45 pm
I’ve watched Chicago schools fail to educate kids for sixty years.
This would provide an alternative for some.
Comment by cal skinner Tuesday, Jul 15, 25 @ 12:47 pm
@NobodyAskedMe
Seriously….see CTU/Chicago public school system….see Teachers Unions Supermajority Campaign funding…
Comment by Beans Matter Tuesday, Jul 15, 25 @ 12:54 pm
No, it seems to be a gateway for funding diversion.
Comment by Honeybear Tuesday, Jul 15, 25 @ 1:03 pm
No, this is so obviously a back-door way to divert resources away from public schools and into private/religious schools.
They could have easily made the tax credit applicable to donations to public schools, because there are plenty of charitable foundations to say nothing of local booster clubs that put funds directly into public schools and extra-curriculars for kids. Why are only private education charities “worthy” of a tax credit and not public ones?
The answer is because they don’t want public education to be viable, an educated public is the GOP’s worst nightmare.
Comment by CA-HOON Tuesday, Jul 15, 25 @ 1:14 pm
I, too, went to catholic schools through undergrad. Also taught my first 8 years in catholic schools. Hard no to this. We are cutting funding of public schools (killing off the Dept. of Ed) so now we can take tax monies for private education. Will private school students take the same tests as public schools? Will private schools now pay for special education & busing the same as public schools? Not expel students like public schools? Can I get the same tax credit if I donate to a public school? I think we all can guess the answers.
Comment by Interim Retiree Tuesday, Jul 15, 25 @ 1:24 pm
No. Public funding for public schools only. Republicans are trying to erode the public sector as they cling tighter to their public jobs with public benefits paid for by taxpayers. Illinois is ranked much higher than many red states in public education, no need for this at all.
Comment by Grandson of Man Tuesday, Jul 15, 25 @ 1:28 pm
=Trying to choke out private schools isn’t going to make public schools any better.=
This isn’t an attempt to “choke out” private schools. Until the right decided that it is ok to fund religion with public dollars, private schools were always funded privately.
Funny none of the advocates for funding private schools with public tax dollars have not agreed that they should then follow the same rules as everyone else since they become public schools.
Private schools are allowed to choose who enrolls (discriminate) public schools cannot.
This will divert public money away from public schools and top private schools at the federal level. Public schools have already experienced cuts in funding, Title II was zeroed out and other funds that were already approved were held up and so far have not been paid. There will be more.
So those saying it won’t affect public schools need to educate yourselves if you are going to make statements. Funding is being cut and that is an absolute fact.
Comment by JS Mill Tuesday, Jul 15, 25 @ 1:28 pm
@Frida ==”…I don’t utilize the public schools, but still pay for them.”==
This smacks of Jane Fonda’s argument that she shouldn’t have to pay taxes toward the military because she doesn’t “need” their protection. She was ruled against because, regardless of whether you directly use a service, you benefit from it in myriad direct and indirect ways.
An educated public serves your interest as a member of society in general, you don’t want your fellows to be illiterate. As a business owner you want a pool of qualified applicants to work for you.
And just as a presumed conservative you want your fellow man to have the basic foundation for providing for themselves (i.e. an EDUCATION) so you don’t have to pay their welfare later on in life.
Comment by CA-HOON Tuesday, Jul 15, 25 @ 1:33 pm
@Cal Skinner: ==”This would provide an alternative for some. ==
That is the whole problem: only some will benefit (i.e. those with money enough to afford it) while the majority of the public will not.
Comment by CA-HOON Tuesday, Jul 15, 25 @ 1:38 pm
No.
Letting the rich write off as taxes the money they spend on children’s elite, private schools is not a public good. It is a good that discriminates in favor of those who wish to privilege their children through private education, and who simultaneously can afford to do so. The more they can afford, literally the more they can benefit and reduce their tax burden to the common wealth.
The rich are literally taking money out of our common wealth by not paying large sums of future taxes on private schools for their children. The working and middle classes will not benefit from this. Technically, a few will; but their savings will pail in comparison to those of the rich, and represent the equivalence of modest transfers of funds between the Treasury and modest private schools. For the rich, these are substantial savings, not “transfers.”
In both cases however, it is the working class and poor who will bear will substantial burdens associated with fewer federal and state funding if this practice is adopted. They both will simply get fewer resources and poorer education.
This is an immoral provision in the new U.S. Budget.
Comment by H-W Tuesday, Jul 15, 25 @ 1:52 pm
==There is no legitimate argument to the contrary right?==
Pray there isn’t.
Comment by City Zen Tuesday, Jul 15, 25 @ 1:59 pm
=Pray there isn’t.=
Ok, that was pretty funny.
I Look forward to the state requiring full compliance with state regulations for parochial schools.
Comment by JS Mill Tuesday, Jul 15, 25 @ 2:21 pm
I totally agree with JS Mill. Many are talking about money, important but more important is separation of church and state.
Comment by Just me Tuesday, Jul 15, 25 @ 2:27 pm
=== Letting the rich write off as taxes the money they spend on children’s elite, private schools is not a public good. ===
Most of the private schools in this state are not “elite” in terms of financial condition of the school or the families that utilize them - especially the Catholic schools on Chicago’s south side and south suburbs. Historically, these are schools attended by middle class and working families that simply decided that the private school option is better suited for their children.
In recent years, the tuition associated with these schools has gone up astronomically because of the fact that there are not enough religious clergy available to staff the school. It is common for tuition in these areas to be around 12-16k a year for high school. This effectively prices out most middle class and working class families unless substantial financial aid packages are made available to them. Many Catholic school students do get assistance through the big shoulders program or other assistance programs, but at the end of the day, there are still a ton of kids that would go to these schools if their families could afford it.
In my opinion, the type of program we are discussing should be used to give an opportunity to families with less financial resources to be able to attend private schools that are better than their neighborhood public schools. To me, it is about providing kids the best opportunities to succeed in the real world - and in many communities, the local public schools simply are never going to give them that opportunity. Even though I am not religious, I still think there is value in private school education and think it can make a difference in the lives of some kids. For that reason alone, I believe it is worthwhile to opt into this program.
Comment by Remember the Alamo II Tuesday, Jul 15, 25 @ 3:49 pm
Hard yes. I would much rather send my children to St Ignatius than 95% of the CPS. Simple as that. When you serve up a better product, maybe I would change, but to date, your product doesn’t measure up, CPS.
Comment by LeofromDolton Tuesday, Jul 15, 25 @ 3:54 pm
Teacher unions have always made the false argument that program like these will siphon off money from the public schools. This federal program doesn’t touch any state funds or state tax credits, so let the kids and families have the same opportunity that people with money have (ie Stacy Davis Gates).
Comment by Southsider Tuesday, Jul 15, 25 @ 4:12 pm
==I would much rather send my children to St Ignatius ==
Nothing is stopping you from doing that. But I don’t want to pay so you can send your kid to private school.
Comment by Demoralized Tuesday, Jul 15, 25 @ 4:38 pm
You all should know that expenses for public school families are eligible for reimbursement - tutoring, transpiration, fees, books, supplies, etc. It’s not only for private school families.
Comment by Bob Gilligan Tuesday, Jul 15, 25 @ 4:47 pm
@Gilligan =You all should know that expenses for public school families are eligible for reimbursement=
This is about direct donations to private school charities (and only private school charities) being given a tax credit. Try reading before commenting.
Comment by CA-HOON Tuesday, Jul 15, 25 @ 4:53 pm
It’s NOT public money. Individuals Re choosing to donate their own money to a NFP, in this case, one that supports private education. We allow tax credits for people who donate to Catholic Charities, Salvation Army, and Rich’s favorite Lutheran Social Services.
Do families have a choice where to send their kids. Yes and no. Largely poor and indigent families with kids in severely failing schools don’t get that choice because of finances unlike many Illinois elected leaders and the CTU president.
Comment by 4 percent Tuesday, Jul 15, 25 @ 5:00 pm
@JS Mill
“However, if private schools…”
No. The first proposition is sufficient. People who opt out of the public system for personal reasons should not have to avoid paying taxes to provide a common education for the citizenry. Period. End of story, right? Anything else is capitulation.
Comment by H-W Tuesday, Jul 15, 25 @ 5:06 pm
==It is common for tuition in these areas to be around 12-16k a year for high school. This effectively prices out most middle class and working class families==
Parochial schools have been dealt two major blows. 1) Less people pursuing faith-based careers, thereby limiting the amount of religious staff (ie cheap labor) and driving up tuition. 2) Ever-increasing property taxes (mostly for schools) that make parochial schools look even more expensive than they already are. Hard to justify spending $17,500 on Nazareth Academy when your property tax bill is over $10K.
Comment by City Zen Tuesday, Jul 15, 25 @ 5:08 pm