A No-Brainer for CT’s Kids
Key Takeaways
- The July 2025 federal law is an opportunity to expand K-12 education for children in public, charter, private and religious schools in every state.
- Any citizen who makes a charitable donation to a qualified “scholarship granting organization” (SGO) will receive up to a $1,700 dollar-for-dollar federal tax credit.
Politics rarely presents “no-brainers,” especially ones on which both sides of the aisle can agree. But, the new $1,700 federal tax credit scholarship law is a true “no-brainer,” a “win-win,” and something CT should adopt as soon as possible.
The July 2025 federal law is an opportunity to expand K-12 education for children in public, charter, private and religious schools in every state. Any citizen who makes a charitable donation to a qualified “scholarship granting organization” (SGO) will receive up to a $1,700 dollar-for-dollar federal tax credit. Yes, if you make a $1,700 contribution to an SGO, you get the money right back as a $1,700 deduction off your federal tax bill. In effect, the federal government will pay for your donation, entirely.
The uses of the scholarship dollars are broad. The money can be used for tutoring, special needs services, extended day programs, education technology and software, supplies, transportation, tuition, and other expenses listed in the current federal Coverdell Savings Account program.
Approximately 90% of CT students are eligible for the scholarships provided by these funds. They cover kids in the most underserved households to kids with household incomes up to 300% of regional median family income.
For CT kids to benefit from this law, the Governor must simply elect to “opt-in,” setting up the framework in CT. What does it cost the state of CT? Only the cost of creating the “list” of SGOs. What does it cost the CT taxpayer? Nothing more than that. What does it cost your local school board? Nothing. The program is the federal government’s way of encouraging private donations to education by refunding the money back to donors.
Over 23 states have already opted in or expressed their intent to do so, including Virginia (blue), South Carolina (red) and Nevada (purple). This means that If CT doesn’t opt-in, millions of new dollars in CT private donations could go to states that do participate. So, unless the Governor takes action, CT taxpayers will simply make the donations to SGOs in other states; taxpayers here will receive the federal tax benefit, but those scholarships will benefit kids in other states.
The $1,700 Federal Scholarship tax credit is that rarest of policy decisions – a true no brainer. Governor Lamont should opt-in for CT and open the gates for private dollars to flow into CT’s education system, costing the state and the taxpayer, nothing. Let’s opt in!