Home · Faith · Oct 2 archive

Catholic Leaders Applaud Proposed Tax Credit Rules

Confirmed

Faith Desk

In Short: Catholic education leaders are applauding proposed regulations for the Federal Scholarship Tax Credit, which incentivizes private contributions to K-12 scholarships benefiting students in public, charter, or private schools, including religious institutions.

The Treasury Department and the IRS jointly announced the proposed regulations for the program, also known as the Education Freedom Tax Credit, which was enacted in 2025 and is set to launch on January 1, 2026.

Bishop David M., quoted in OSV News, described the tax credit as 'transformative,' saying it 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.

The National Catholic Educational Association also welcomed the announcement, noting that it provides additional clarity for states, donors, and scholarship-granting organizations (SGOs).

Under the program, participating states will identify qualifying SGOs to which donors from any state can contribute to receive the tax credit.

Scholarships can be used for a broad set of expenses incurred in connection with or required by their schools, according to the Department of Education’s fact sheet.

SGOs must also provide funds to at least 10 students who do not all attend the same school.

The Conference of Catholic Bishops’ Committee on Catholic Education, in an October statement, emphasized the importance of the tax credit in expanding educational opportunities for America’s children.

In addition to the tax credit, Catholic education leaders are also focusing on other initiatives, such as raising awareness among Tennessee Catholic families about how to protect their children from risks posed by AI.

DePaul University has announced it will serve as the Chicago-based partner for the Vatican’s Laudato si’ Center for Higher Education, collaborating with more than 60 research and higher education institutions across 35 countries.

The National Catholic Bioethics Center has announced its partnership with the Catholic University of America for a master’s degree in moral theology and ethics.

A study carried out on behalf of the Center for Catholic Studies at St. Mary’s University in San Antonio, Texas, has found that graduates of Catholic colleges report higher levels of preparedness in dealing with AI than graduates of secular institutions.

About 44% of Catholic college graduates said they use AI at least daily, compared with 36% of secular college graduates, while 33% said their college moderately or better prepared them to use AI, compared with 23% of secular graduates.

What's confirmed

What's still developing

Sources