Governor Sherrill Must Opt-in to the Federal Scholarship Tax Credit
Across our state, families are working hard to provide their children with the educational support they need to thrive. Today, I want to share an important update about a federal program that could dramatically expand opportunities for New Jersey students — but only if Governor Sherrill chooses to opt in.
Congress recently enacted the Federal Scholarship Tax Credit (FSTC), a landmark law designed to empower parents and strengthen K–12 education nationwide. At its core is a simple but powerful idea: allow individuals to redirect a portion of their federal tax burden to help children access tutoring, special‑needs services, extended‑day programs, transportation, education technology, and even private, charter, or micro‑school tuition.
Here are the key provisions:
- A 100% federal tax credit for up to $1,700 in annual charitable donations to Scholarship Granting Organizations (SGOs). These SGOs then award scholarships directly to families.
- Scholarships may be used for a wide range of educational needs — tutoring, special‑needs services, extended‑day programs, technology, supplies, transportation, and private and micro school tuition.
- Under the law’s “opt‑in” provision, Governor Sherrill must notify the U.S. Treasury Department by January 1 if New Jersey will participate. She must also submit a list of SGOs that meet federal requirements.
- As of today, 30 states have already opted in — positioning their students to benefit immediately.
This is a moment of tremendous opportunity for New Jersey.
If Governor Sherrill declines to participate, New Jersey families will lose access to millions of dollars in potential scholarships. Those dollars will not disappear — they will simply flow to SGOs in other states that have opted in. New Jersey taxpayers will be funding educational opportunities for children elsewhere, while our own students receive nothing. Let me say it again; MILLIONS of your federal tax dollars will flow out of New Jersey!
New Jersey cannot afford to sit on the sidelines while other states move forward. We are urging Governor Sherrill to opt in and ensure that our children receive the support they deserve. I want to encourage you to sign this petition to Governor Sherrill that will be delivered to her office along with signatures from our coalition partners across the state.
