Pennsylvania is still undecided about participating in the Federal Scholarship Tax Credit program, also known as the Education Freedom Tax Credit. The program, created by Congress in 2025, allows individuals to claim a tax credit of up to $1,700 for contributions to Scholarship Granting Organizations (SGOs) that provide scholarships for education-related services at private or public schools.

Program Details

The program is designed to provide more educational options for students, particularly those from low-income families. Supporters argue that participation will allow Pennsylvania to tap into millions of dollars of private funding and point to polls indicating broad public approval.

Rachel Langan, senior policy analyst at the Commonwealth Foundation, said that the federal scholarship tax credit opt-in is a “no-brainer” for Pennsylvania. “It’s truly a win-win: students access more educational opportunities, and at no cost to the state or school districts,” she said.

State Response

Gov. Josh Shapiro is waiting for additional federal guidance before making a decision. Meanwhile, a bipartisan group of state lawmakers has proposed legislation that would require the state’s participation. Sen. Anthony Williams, D-Philadelphia, said that the program is another option that could help households that may not otherwise have the means to secure additional educational support for their children.

Thirty-one states have either opted in or announced plans to participate in the program. Pennsylvania has a divided government, with a Democratic governor and Democratic-controlled House and a Republican-controlled Senate.

Original reporting: KTBS 3 (Shreveport) — read the source article.