Home · Faith · Nov 9 archive
Federal Tax Credit Aims to Boost Catholic School Enrollment
· Confirmed
In Short: Education leaders say the new federal tax credit could expand access to Catholic schools, potentially easing financial burdens on families.
The tax credit allows individuals to claim up to $1,700 and married couples to claim up to $3,400 annually for donations to 501(c)(3) public charities providing scholarships to elementary or secondary school pupils.
According to OSV News, the tax credit requires that scholarship eligibility be extended to students whose prior-year household income is no more than 300% of the area’s median gross income, adjusted for family size. 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, expressed hope that the tax credit would have a positive impact on enrollment.
The trentonmonitor.com notes that the New Jersey Catholic Conference (NJCC) has launched a special website, www.NJScholarshipCredit.org, to raise awareness of the tax credit among parents, schools, potential donors, and legislators. Bonnie Milecki, diocesan assistant superintendent for school development and operations and president of the New Jersey Council for American Private Education, emphasized that the tax credit represents a significant opportunity for New Jersey families and students.
Both OSV News and trentonmonitor.com agree that the tax credit could lead to increased contributions to Catholic nonprofits that grant scholarships for K-12 students. OSV News reports that the tax credit could help families who might otherwise struggle to afford Catholic school tuition, while trentonmonitor.com highlights the potential for the tax credit to benefit a wide range of educational organizations, including public and nonpublic schools.
Greg Richmond, superintendent of the Archdiocese of Chicago school system, noted that the tax credit is part of a broader push for school choice, which has gained momentum over the past decade. Peterson of the Diocese of Sioux Falls, SD, highlighted the transformative potential of the tax credit, stating it would create opportunities for families to access resources to expand their educational options.
OSV News and trentonmonitor.com both report that the tax credit is expected to benefit Catholic schools, which have faced financial challenges due to inflation and the middle-class squeeze. The Archdiocese of Miami is applying to participate in the EFTC through its newly established Catholic Tax Credit Scholarship Fund of South Florida, with schools like St. Bonaventure Catholic School currently at or near capacity.
Both publications agree that the tax credit could ease financial burdens on families, potentially allowing parents to reduce the number of jobs they need to work to afford Catholic school tuition. The NCEA recorded that 6.6% of Catholic school students received Title I services during 2025-2026, indicating that the tax credit could provide substantial scholarships for students from low-income families.
OSV News and trentonmonitor.com both report that the tax credit is expected to benefit approximately 95% of American children, as the Treasury Department estimates that 95% of American children live in households that meet the income limit for the scholarship tax credit. The NJCC has established a special website to serve as a resource for parents, schools, potential donors, and legislators.
Both publications agree that the decision on participation could shape how school choice and scholarship opportunities develop for students and families, affecting educators, advocates, and community organizations across the country. Governors who have not yet opted in face an important decision with real consequences for families in their states.
OSV News and trentonmonitor.com both report that the tax credit is part of a broader push for school choice, which has gained momentum over the past decade. The tax credit is expected to provide a substantial boost to Catholic schools facing financial challenges, potentially easing financial burdens on families.
Both publications agree that the tax credit could lead to increased contributions to Catholic nonprofits that grant scholarships for K-12 students, potentially benefiting a wide range of educational organizations, including public and nonpublic schools.
Both OSV News and trentonmonitor.com agree that the tax credit could ease financial burdens on families, potentially allowing parents to reduce the number of jobs they need to work to afford Catholic school tuition. The tax credit is expected to benefit approximately 95% of American children, as the Treasury Department estimates that 95% of American children live in households that meet the income limit for the scholarship tax credit.
What this adds
The tax credit is expected to benefit Catholic schools, which have faced financial challenges due to inflation and the middle-class squeeze, as noted by Greg Richmond, superintendent of the Archdiocese of Chicago school system. The decision on participation could shape how school choice and scholarship opportunities develop for students and families, affecting educators, advocates, and community organizations across the country.
Background
Education leaders say the new federal tax credit could expand access to Catholic schools, potentially easing financial burdens on families.
Education leaders say the new federal tax credit could expand access to Catholic schools, potentially easing financial burdens on families.
Catholic schools are pre-primary, primary and secondary educational institutions administered in association with the Catholic Church. As of 2011, the Catholic Church operates the world's largest religious, non-governmental school system.
What's confirmed
- Treasury Department estimates approximately 95% of American children live in households that meet the income limit for the scholarship tax credit.
- The tax credit requires that scholarship eligibility be extended to students whose prior-year household income is no more than 300% of the area’s median gross income, adjusted for family size.
What's still developing
- Pope Leo XIV called on Catholic schools to be supportive environments for young people.
- “I represent New Jersey in national conversations about education policy, and I’ve watched other states prepare to seize this opportunity. They know that if New Jersey declines to participate, the tax credit dollars won’t go unclaimed, they’ll flow to states that said ‘yes’,” she explained.
- The Education Freedom Tax Credit was enacted in 2025 within the federal budget reconciliation bill.
- Milecki noted that the tax credit is “a rare opportunity in public policy,” since it can extend benefits to New Jersey residents without resulting in any cost to the state, or its taxpayers.