Federal tax dollars could soon be applied to education expenses for eligible New Jersey families at no cost to the state – but only if Gov. Mikie Sherrill opts in by Jan. 1, 2027.
The New Jersey Catholic Conference, public policy arm of the bishops of New Jersey, launched an advocacy campaign this month featuring dedicated web pages, an Action Alert and a packet of digital and social media graphics and bulletin inserts to be shared throughout the state via Catholic schools, parishes and media outlets. The campaign urges voters to reach out to Gov. Sherrill and ask her to say “yes” to New Jersey’s participation in the Federal Scholarship Tax Credit.
According to the NJCC’s website, if the governor accepts the program for New Jersey, it would provide federal tax dollars to New Jersey families for educational assistance. The program would impose no cost to the state, and scholarships would benefit both students attending public and non-public schools. Each state must formally opt in to the FSTC by the new year to receive the benefits.
“Many parents want to choose a Catholic school for their children, but they face financial challenges that can sometimes be very difficult to overcome,” said Dr. Bill Watson, superintendent of the Office of Catholic Schools for the Diocese of Camden. “This tax credit makes funding available for scholarships to families earning up to 300% of the median household income in their area. That means that more families will be able to afford a Catholic school that aligns with their values and what they believe is best for their children – and families already making that choice will have additional funding available so their children can stay enrolled.”
Bishop David M. O’Connell, C.M., chairman of the U.S. Conference of Catholic Bishops’ Committee on Catholic Education, advocated for the FSTC as “a transformative opportunity for children across the country.”
“The Catholic Church teaches that parents are the first and primary educators of our children, and that parents have the obligation of educating their children in the manner best suited for their development and needs. The Federal Scholarship Tax Credit will create opportunities for families to access much-needed resources to expand their options for choosing the best tools and learning environment for their children,” Bishop O’Connell, of the Diocese of Trenton, wrote in a brief message released Oct. 2.
As indicated in the Internal Revenue Code Section 25F, taxpayers living in participating states can allocate federal tax dollars already owed – up to $1,700 per individual or $3,400 for married couples – as a nonrefundable tax credit to an approved Scholarship Granting Organization: a nonprofit organization that provides scholarships for K–12 education-related expenses, which is certified by the state. Scholarship Granting Organizations then use those contributions to provide scholarships for tuition, books, fees, supplies, tutoring and other educational services.
“You may have heard this program described as a ‘school voucher’ scheme that will hurt public education, or as a benefit for wealthy families who could already afford private school,” reads the NJCC Action Alert. “Neither is accurate, and we need your voice to help set the record straight. By federal law, scholarships are limited to students from households earning no more than 300% of their area’s median income, keeping the focus on working- and middle-class families.”
These federal tax dollars can make educational choices and support more available and affordable for everyday families with K-12 students. But if New Jersey doesn’t participate, those scholarship donations will go to help students in other states, the Action Alert cites. As of publication, 31 states have opted in or committed to the tax credits; four have declined and two have vetoed. To see the list, visit eftccredit.com/tools/state-opt-in-tracker.
“Declining to participate will not prevent New Jersey residents from claiming the federal tax credit. It will only determine where their donations can go and which children can benefit,” said Dr. Sarah Kerins, assistant superintendent of school services for the Diocese of Camden. “If New Jersey does not participate, residents may contribute to approved organizations in other participating states, and those contributions will support students outside New Jersey. New Jersey would effectively be turning away charitable resources that could otherwise help its own children and families.”
For more NJCC advocacy campaign materials and an overview of FSTC, go to: njcatholic.org/education-tax-credit-spread-the-word and njcatholic.org/education-tax-credit-overview.
EmmaLee Italia is a contributing editor for the Monitor Magazine, the publication for the Diocese of Trenton.
Jennifer Mauro, managing editor of The Catholic Star Herald, contributed to this article.
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