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The following is content from an external news source, republished with permission.
by Emily Scolnick, Pennsylvania Capital-Star
June 22, 2026
Emily Scolnick is a 2026 Dow Jones News Fund intern at the Pennsylvania Capital-Star.
More than half of the 50 states have opted into a new Trump Administration initiative aiming to provide tax credits and expand school choice for students and families.
But Pennsylvania has yet to join, and Gov. Josh Shapiro is facing pressure from federal Republican lawmakers and community members to commit to the program
The U.S. Treasury Department recently previewed guidance on the program, which is slated to launch in January of 2027. Last Monday, U.S. Secretary of Education Linda McMahon joined Sen. Dave McCormick (R-PA) and education representatives from across Pennsylvania at a virtual roundtable. They advocated for the commonwealth to opt in, expand school choice for its students and families, and take advantage of the opportunities the tax credit program provides.
“This program is the largest expansion of education freedom in our nation’s history,” McMahon said. “Seventy-eight percent of Pennsylvania voters across demographics and party lines favor opting into the Education Freedom Tax Credit. Parents want options. They want the freedom to choose an education that fits their child’s needs.”
McCormick added that education access entails “leveling the playing field,” so that students can successfully learn to think, adapt, and solve problems at the school that is best for them.Congress created the Education Freedom Tax Credit program last summer as part of the One Big Beautiful Bill Act, giving taxpayers that donate to federally approved scholarship organizations up to $1,700 in tax credits.
As of May, 27 states have officially signed onto the program. Another nine have faced disagreements between their governors and their legislatures over whether to do so.
A state can opt in via an order from its governor or with a law passed by its legislature, which still requires executive approval. The governor must be the one to submit the list of official Scholarship Granting Organizations for federal approval, which solidifies the state’s place in the program.
Shapiro’s administration has previously cited a lack of federal guidance for why Pennsylvania has yet to join, but “appreciates” the Treasury’s recent guidance, according to Rosie Lapowsky, a spokesperson for the governor. She added that the administration is “continuing to review” the program.
The initiative could generate over $960 million in scholarships for Pennsylvania students should the commonwealth join, according to Ashling Preston, the federal affairs director at the American Federation for Children.
“With this new clarity, every state should opt in immediately,” she said.
To benefit, a state must become a “covered state,” voluntarily choosing to opt in to the program and identifying scholarship organizations within it. The federal government must approve the f organizations. Taxpayers must then donate to these groups, making them eligible to receive the tax credits.
Families that earn up to 300% of their area’s median income will qualify for scholarships, which can be used for any aspect of a student’s education.
Critics have questioned if the program will divert money from public schools, whether through the redirection of tax funds or through students having increased flexibility to transfer to private institutions, resulting in less funding. The Treasury says the program will not take money from local or state taxes.
“Our public schools will lose funding if there is a mass exodus of students who go to voucher schools,” Susan Spicka, the executive director of Education Voters of Pennsylvania, said.
She said the Treasury’s previewed guidance “created more questions than answers” of how states could directly access and control the funds.
“I would hope that Josh Shapiro would take his time and very carefully consider what this program would look like, who would benefit, and what type of control as a state we would have over any of these dollars,” Spicka added.
Pennsylvania currently offers two programs that offer tax benefits to businesses that sponsor private school scholarships. Advocates for the new federal initiative say that it will add to the benefits for Pennsylvania students and families while continuing to expand educational opportunities and flexibility throughout the commonwealth.
Jenny Sved, the executive director of Teach PA — a coalition of Jewish day schools — said that the costs of a private or religious school education has proved to be a barrier for some families, and the federal tax credit would give them access to educational opportunities they may not be able to afford otherwise.
“We’re already seeing scholarships working for our Jewish day schools, and the prospect of having an additional opportunity for more students and schools to benefit from a scholarship like this would just be really huge,” she said.
JoAnn Semko, the superintendent of the Diocese of Altoona-Johnstown Catholic Schools, added that existing tax benefits have helped students struggling in low-income areas obtain a better education, and future federal assistance could help shuttered schools reopen and thriving schools continue to flourish.
“Every kid deserves a wonderful education, and I thank our legislators for giving us the opportunity to be able to provide that wonderful education for all of those students. We care about every one of them,” she said.
McMahon emphasized that public school families can use scholarships they receive from their contributions for tutoring, after-school programs, or special education services.
“The question before us today is not whether the demand exists, but whether or not we will rise to meet it,” she said.
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