PA state legislators, education leaders and parents discuss how the new federal tax credit scholarship program would empower parents and prioritize individual students’ needs.
Philadelphia, PA – Today the Invest in Education Foundation, alongside Pennsylvania state legislators, scholarship granting organizations (SGOs) and local advocates discussed the new federal tax credit scholarship program’s benefits to Pennsylvania’s families at the event, Empowering Parents.
The event was hosted by Invest in Education Foundation, an organization that educates the public and policymakers about the educational opportunity that the new federal tax credit scholarship program will provide Pennsylvania students in public and private schools. This new federal tax credit scholarship, that was signed into law on July 4, 2025, would generate exponentially more charitable donations to SGOs that would fund scholarships for a variety of eligible expenses in elementary and secondary education across the Commonwealth.
The federal law provides governors with the discretion of whether to allow their respective state’s children to benefit from the new scholarships that would result from the tax credit donation incentive. Last December, the U.S. Department of the Treasury through the Internal Revenue Service (IRS) issued Revenue Procedure 2026-6 to allow the nation’s governors the ability to make an advance election for their states to participate in the federal tax credit scholarship program. Governors must “opt in” to the federal tax credit scholarship program not later than January 1, 2027. Currently 27 governors have done so, including Colorado Governor Jared Polis.
The federal tax credit scholarship program, based on the Educational Choice for Children Act (ECCA) that was co-sponsored by Sen. McCormick and other Pennsylvania lawmakers, will help students in grades K-12 access a school or education service of their parents’ choice. Scholarships are funded with private donations, not federal money, and donors receive a 100 percent federal tax credit of up to $1,700 annually. Students could use scholarships for tuition, fees, tutoring, special needs services, extended day programs, or education technology, among other eligible uses.
Currently in Pennsylvania, the state’s Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs allow only businesses to donate to scholarship organizations and receive state tax credits in return. While these programs provide hundreds of millions of dollars annually in scholarships to students, demand consistently exceeds available funding. The new program would complement these existing efforts by allowing individual taxpayers to make donations, providing additional funding and expanding access to educational options for all families, particularly through providing funding for tax credits to ease financial burdens on parents.
State Senator Anthony Williams, 8th Legislative District, submitted a statement saying: “I’m supporting this effort because the relationship between parents, students, and teachers should be the priority in educating a child, and foremost in deciding where and why a child is sent to a particular school.”
“Every parent in Pennsylvania should have the freedom to choose the school that fits their child’s needs,” said State Representative Martina White, 170th Legislative District. “Expanding tax-credit scholarship opportunities helps break down financial barriers and ensures families across our Commonwealth can access high-quality education. I’m proud to support measures that empower parents and strengthen educational options for students in every community.”
State Representative Danilo Burgos, 197th Legislative District, said: “Every child deserves access to an education that helps them succeed, regardless of their ZIP code or their family’s financial circumstances. Programs that expand scholarship opportunities give families greater flexibility to find the learning environment that best supports their children. When we invest in students and empower parents, we strengthen communities and create brighter futures across Pennsylvania.”
“Pennsylvania has long been a national leader in using tax credit scholarships to expand educational opportunity, but demand continues to far outpace supply,” said Anne Lesser, President and CEO of the Invest in Education Foundation. “This new federal tax credit scholarship program builds on programs in the state by unlocking additional private support for students and families. By opting-in, the Commonwealth can ensure that thousands more children have access to the educational options that best meet their individual needs.”
Elliot Holtz, Chairman of the Foundation of Jewish Day Schools of Greater Philadelphia and Co-Chair of Teach PA said: “With the cost of education continuing to rise and pressures on families increasing, a federal tax credit scholarship for Pennsylvania students is one of the most effective ways to expand access to Jewish education. By directing federal tax dollars to scholarships, we will be making a strategic investment in students, families, and the future of our community.”
Jorge Elorza, President and CEO of Education Reform Now, said: “For too long, a child’s educational opportunities have been determined by their ZIP code rather than their potential. The federal tax credit scholarship program is a commonsense, student-centered solution that empowers families and expands access to high-quality educational options. By opting in, Pennsylvania can put students first and take a meaningful step toward a more equitable education system.”
Kamesha Callands, Program Ambassador for Children’s Scholarship Fund Philadelphia, said: “Behind every scholarship is a family with hope; hope for a safe, enriching, and academically excellent education for their child. These programs open doors for students who might otherwise be left behind, and they build brighter futures for Philadelphia’s children. I’m honored to stand with families as they pursue opportunities that help their children succeed.”
Keisha Jordan, President and CEO of Children’s Scholarship Fund Philadelphia, said: “Every day, we see families who are continuously making sacrifices to access the education their children need to succeed. This federal tax credit scholarship program would provide critical additional resources for families, helping them close gaps, pursue opportunity, and make choices that put their children on a path to long-term success.”
Kristie Dugan, President of Little Flower Catholic Girls High School, said: “The new Federal Tax Credit Scholarship provides those opportunities to our students, making a private education a feasible option for low-income households. Education is not a one-size-fits-all endeavor, and the Federal Tax Credit Scholarship affirms that principle, allowing our city’s students to grow and excel in an environment that respects their individuality.”
To learn more, please visit scholarshiptaxcredit.org.
About Invest in Education Foundation
Invest in Education Foundation is a non-partisan research and policy 501(c)(3) organization that educates the public and policymakers about school choice as a means to expand educational freedom and opportunity for K-12 parents and students.
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