(The Center Square) – Roughly 1.8 million students in Pennsylvania are potentially impacted by Gov. Josh Shapiro’s waffling over joining the federal school choice tax credit program.
With elections in the rearview, its unclear when the administration will publicize its decision. When asked for an update on Thursday, spokeswoman Rosie Lapowsky referred The Center Square to governor's comments made during an Oct. 7 debate when he was still reviewing the rules and would speak more about it "soon."
In the meantime, a vocal coalition of program supporters sent a letter to Shapiro encouraging him to opt-in giving families access to educational support long financially out of reach.
“That’s what makes this program so exciting,” said Jenny Sved, executive director of Teach PA, and one of nearly two dozen signatories from The Coalition for Educational Freedom, in a statement shared with The Center Square. “Whether it’s helping a family afford Jewish day school tuition, giving a public school student access to tutoring or SAT prep, or providing additional support for a child with special needs, this is a win for families across Pennsylvania.”
The proposed program regulations from the Department of the Treasury and the Internal Revenue Service allow eligible taxpayers to claim an annual credit of up to $1,700 for qualifying contributions to scholarship-granting organizations, or up to $3,400 for married couples filing jointly.
The program will take effect Jan. 1, and in many ways, mirrors Pennsylvania’s educational choice tax credit programs, which have provided tuition assistance to more than 100,000 students. If Shapiro opted in at the federal level, 1.8 million students would become eligible.
Eligibility for students is up to 300% of area median gross income, based on Housing and Urban Development guidelines. In Pennsylvania, this ranges from approximately $200,000 in Forest County – the lowest income bracket – to $358,000 in the highest bracket in the southeastern part of the state. Within that ceiling, each scholarship-granting organization can set more defined rules.
Scholarship-granting organizations must be listed by the state, reported to the IRS, and serve at least 10 students attending more than one school. They must spend 90% of the funds on scholarships, with a maximum of 10% allowed for other expenses.
Both at the state and federal level, taxpayer-funded scholarships remain deeply unpopular among certain critics, including within Shapiro’s own party. In 2023, he backed legislative Democrats and line-item vetoed a similar program he helped Senate Republicans construct.
The crux of the issue for legislators against the program centers on constitutionality: does funneling taxpayer money to private schools and non-traditional education programs cross a line?
The nation’s leading teachers’ union thinks so. Princess Moss, president of the National Education Association, said of the program that the Trump administration is more focused on “putting its thumb on the scale” for private schools, rather than help families afford groceries and gas.
“At a time when educators, students, and families are calling for more resources to strengthen neighborhood public schools, this administration is advancing a plan to divert taxpayer dollars to subsidize private education for a select few,” she said.
Its Pennsylvania chapter, PSEA, has also long opposed school choice tax credit expansion and prefers instead to see the money – $680 million in Pennsylvania, alone – invested into public education.
Democrats for Education Reform do not share the same sentiments.
“Governor Shapiro has already been a champion of educational innovations in the commonwealth, and opting in would build on his record of putting kids ahead of politics,” said Jorge Elorza, the group’s CEO. “The choice before the governor is straightforward: if he opts out, more than $7 billion will automatically leave the state each year; if he opts in, Pennsylvania can capture as much of that money as possible.”
Treasury officials and the Internal Revenue Service estimate the program could support nearly 700 organizations nationally and generate $26 billion in annual contributions from more than 11 million taxpayers by 2030.
“These resources stand to benefit the families who need them most for tutoring, books, special needs services, and much more,” Elorza said. “I trust the governor will make the right choice.”
So far, Shapiro has not signed onto the program, even as New York Gov. Kathy Hochul gave her final approval earlier this month, joining 31 other states, red and blue alike. He said on the Oct. 7 debate stage that he hadn’t closed the door on the program and would be making an announcement about it “soon.”
Now, in the aftermath of the “blue tsunami” that swept Republicans out of state and congressional districts, Shapiro’s trifecta power in the Legislature could impact his decision.
As far as his immediate plans, Shapiro recently told The Center Square he wants to raise the minimum wage, constitutionalize abortion rights, give victims of sexual abuse the opportunity to confront their abusers in court, invest in mass transit across the state, and build more housing.
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