Home · Faith · Nov 3 archive

New scholarship tax credit could expand access to Catholic schools, say education leaders

3:43 PM ETConfirmedShare via:          

Faith Desk

In Short: Education leaders say the Federal Scholarship Tax Credit could expand access to Catholic schools.

The Federal Scholarship Tax Credit, passed into law on July 4, 2025, is seen as a potential lifeline for Catholic schools, according to Sister Dale McDonald, a member of the Sisters of the Presentation of the Virgin Mary and vice president of public policy for the National Catholic Educational Association (NCEA).

The tax credit allows individuals to claim up to $1,700 and married couples filing jointly to claim up to $3,400 annually for donations to 501(c)(3) public charities providing scholarships to elementary or secondary school pupils.

Sister McDonald expressed hope that the tax credit would have a positive impact on enrollment, noting that during the 2025-2026 academic year, only 6.6% of Catholic school students received Title I services.

The tax credit is designed to be substantial for families of very low income, and the Treasury Department estimates that approximately 95% of American children live in households that meet the income limit for the scholarship tax credit.

Bishop David M. Peterson of the National Catholic Educational Association explained that while donors cannot earmark specific children for scholarships, they can choose a school or diocese to support, which could lead to increased contributions to Catholic nonprofits that grant scholarships.

The tax credit eligibility extends to students whose prior-year household income is no more than 300% of the area’s median gross income, adjusted for family size.

Bishop Peterson noted that the more funds raised, the more scholarships schools can offer, potentially reducing the financial burden on families.

The tax credit is part of a broader push for school choice, a priority for Catholic leaders who advocate for parents' right to provide an education that aligns with their convictions.

The NCEA is working to increase state participation in the federal program, which could provide millions of children with school choice assistance, including scholarships to attend Catholic schools.

Pope Leo XIV has emphasized the importance of supportive environments for young people, urging Catholic schools to be nurturing spaces.

The tax credit could also benefit Catholic schools preparing for World Youth Day 2027, as Bishop Manuel de Jesús Rodríguez of Florida highlighted in a March 2026 column.

The tax credit aims to create opportunities for families to access resources to choose the best learning environment for their children, according to Bishop Peterson.

Background

What's confirmed

• The Federal Scholarship Tax Credit, passed into law on July 4, 2025, is seen as a potential lifeline for Catholic schools, according to Sister Dale McDonald, a member of the Sisters of the Presentation of the Virgin Mary and vice president of public policy for the National Catholic Educational Association (NCEA).
• The tax credit allows individuals to claim up to $1,700 and married couples filing jointly to claim up to $3,400 annually for donations to 501(c)(3) public charities providing scholarships to elementary or secondary school pupils.
• Sister McDonald expressed hope that the tax credit would have a positive impact on enrollment, noting that during the 2025-2026 academic year, only 6.6% of Catholic school students received Title I services.
• The tax credit is designed to be substantial for families of very low income, and the Treasury Department estimates that approximately 95% of American children live in households that meet the income limit for the scholarship tax credit.
• Bishop David M. Peterson of the National Catholic Educational Association explained that while donors cannot earmark specific children for scholarships, they can choose a school or diocese to support, which could lead to increased contributions to Catholic nonprofits that grant scholarships.
• The tax credit eligibility extends to students whose prior-year household income is no more than 300% of the area’s median gross income, adjusted for family size.
• Bishop Peterson noted that the more funds raised, the more scholarships schools can offer, potentially reducing the financial burden on families.
• The tax credit is part of a broader push for school choice, a priority for Catholic leaders who advocate for parents' right to provide an education that aligns with their convictions.
• The NCEA is working to increase state participation in the federal program, which could provide millions of children with school choice assistance, including scholarships to attend Catholic schools.
• Pope Leo XIV has emphasized the importance of supportive environments for young people, urging Catholic schools to be nurturing spaces.
• The tax credit could also benefit Catholic schools preparing for World Youth Day 2027, as Bishop Manuel de Jesús Rodríguez of Florida highlighted in a March 2026 column.
• The tax credit aims to create opportunities for families to access resources to choose the best learning environment for their children, according to Bishop Peterson.

What's still developing

• PALM BEACH GARDENS | Every three to four years, Catholic young people from around the world gather to encounter Jesus, their pope and each other in a spirit of love, peace, education and mutual respect.
• Louis Bicentennial Jubilee Year Catholic Education Evangelization Pro-life More Catholic St.
• “Beneath the armor that so many teenagers build around themselves to avoid suffering lies the desire to love and be loved,” he said to participants in the International Congress for Pastoral Care in Schools and Universities, organized by the Dicastery for Culture and Education, and taking place at the Vatican from October 22 to 23.
• “A Catholic Family’s Guide to AI Safety,” DePaul University partners with the Vatican on sustainability, and more in this week’s education roundup.
• Starting with the 2026-2027 academic year, “students who complete the NCBC’s National Catholic Certification Program in Health Care Ethics can transfer six credits toward CUA’s master’s degree in moral theology/ethics,” according to an Aug. 24 press release from the bioethics center.
• Vincent DePaul Society Catholic Foundation of Southern Nebraska Charity and Stewardship Appeal Vocations Bishop’s Appeal for Vocations What is a Vocation?
• A top Australian Catholic bishop has acknowledged the eight-year delay in bringing a fellow bishop to justice on charges he sexually abused young Indigenous men.
• Long championed by Catholic leaders as a concrete way to apply Church teaching that parents have a right to provide an education for their children that corresponds with their convictions, school choice has made significant gains since the first program was launched in Wisconsin in 1990.
• Her path began through Queen of Peace Church and School, Cardinal Dougherty and Lansdale Catholic high schools, and deepened through college and a career in Catholic education and service ultimately leading her to Immaculata University before entering the IHMs.
• After graduating from Marywood University in Scranton, Bielat joined a Capuchin volunteer mission in New York, taught in Archdiocese of Philadelphia schools, served as a campus minister and teacher at Nazareth Academy, and studied at Chicago’s Catholic Theological Union, the same school that taught Villanova graduate Pope Leo XIV.
• The Bishops’ Conference of England and Wales has published a document outlining the work of the Catholic Church in Wales as well as its main policy requests.
• Their combined 142 parishes serve a Catholic population of around 265,000 – making Catholicism one of the largest faiths in Wales.

Sources

• OSV Newslink
• Thefloridacatholiclink
• Stlouisreviewlink
• Vaticannewslink
• Ewtnvaticanlink
• Newwaysministrylink
• Ewtnnewslink
• Lincolndioceselink
• Kdhnewslink
• OSV Newslink
• Ncregisterlink
• Catholicphillylink
• Cbcewlink
• WarpBeat — background on Pope Leo XIV Urges Catholic Schools to Support Youth link
• WarpBeat — background on Pope Leo XIV Urges Catholic Schools to Support Young People link
• Citizens Research Council of Michigan (crcmich) — video link