Illinois Governor JB Pritzker now holds the decision on whether the state will join the Federal Scholarship Tax Credit Program, following a strong show of support from voters in 31 counties during the March 17th primary election. The non-binding referendum was designed to gauge public interest in the initiative, which offers tax incentives to donors who cover education costs for both public and private school students.
Sixty-three percent of voters favored Illinois joining the program. If adopted, the program would allow private donors to contribute to Scholarship Granting Organizations (SGOs). These organizations would then distribute funds to eligible students attending public or private schools. Donors would receive up to $1,700 in matching federal tax credits for their contributions.
The scholarship program is intended to provide financial assistance for a variety of educational expenses, including books, tutoring, college admission exam fees, and educational therapy. To qualify, students’ household incomes must be less than 300% of the area’s median gross income.
Some critics argue the program resembles a voucher system that could divert support from public schools to private ones. However, supporters note that the program relies exclusively on private donations and does not redirect existing state or federal education funding. Additionally, some SGOs have indicated a willingness to allocate received funds to public schools.
“There is no cost to the state if we don’t do this, but there’s significant missed opportunity if we opt out, and I think the voters get that and they’re telling Gov. Pritzker that they want the state to opt in to this program,” said a program advocate.
Governor Pritzker has until the end of the year to make a decision. If Illinois opts in, the program will take effect January 1st. Twenty-eight states have already joined the initiative.