Federal Scholarship Tax Credit: LEARN & SHARE

• The SGO can support not only Catholic education but also public or alternative education options, making the “opt-in” a win for students in any situation.
• Expand access to educational services that a student cannot receive at their current school – the funds can be used for tutoring, speech or occupational therapy, supplies or technology such as internet access, and even tuition assistance.
• Increase access to quality education for many of Delaware and Maryland’s students by helping provide the tools they need to learn effectively.
• Make up for state budget shortfalls in education funding. A “yes” for Maryland and Delaware’s kids opens a door for the future of education in our states.
• The Federal Scholarship Tax Credit (FSTC) is national program enacted by recent federal legislation that allows individuals redirect up to $1,700 of their federal taxes to support K–12 scholarships. Per the Federal guidelines released in October 2026, couples can donate $1,700 each and receive a tax credit of $3,400 for their household.
• Even small donations will make a difference for you the donor and the school you support. This program is about local investment in local education.
• These funds go to sanctioned nonprofit Scholarship Granting Organizations (SGOs), which then provide scholarships to help families access the education that best meets their children’s needs.
• There is no cost to the state, all the Governor needs to do is opt-in by January 1,2027 in order to allow donor to direct their tax credit to a designated SGO in their state and for families and students to apply for these funds.
• Current federal guidelines note that students are eligible to apply for funds from the FSTC if their household is within 300% of the Area Median Income (AMI) where they live. This encompasses more of our local school children than not.
• Guidelines also note that a student is eligible regardless of what type of school they attend – public, private, or parochial students are eligible to apply for funds from an SGO.

• Residents of Maryland and Delaware can still claim the credit HOWEVER funds may go to students in other states if the Governors do not opt-in to the program.
• Approximately 30 states have opted-in, we need your help to urge the Governor to opt in for children in Maryland and Delaware!
• Expand access to Catholic education for low- and middle-income families
• Increase tuition assistance across diocesan schools
• Provide new funding for:
  • Special education support
  • Tutoring and enrichment
  • Transportation, classroom technology, supplies, and related costs

Maryland Catholic Conference

(Stay up to date on State legislation in Maryland and how state and local issues will affect Catholic Marylanders)

National Catholic Education Association

(Learn about Public Policy activities affecting Catholic Education at the National level, including the Federal Scholarship Tax Credit)

United States Conference of Catholic Bishops (USCCB)

(The USCCB Secretariat for Catholic Education has created an FAQ fact sheet to help dispel confusion about the Federal Scholarship Tax Credit, sometimes called the Education Freedom Tax Credit)

• Does this cost me anything?
  • In many cases, no. As a donor to the program, the tax credit offsets your federal tax liability dollar-for-dollar (up to $1,700 for an individual or $3,400 for married couples filing jointly).
• When can I apply for scholarships?
  • The program begins in 2027, should the Governors of Maryland and/or Delaware opt-in, more details will be made available.
• Who qualifies for scholarships?
  • Generally, students from low- and middle-income families (up to ~300% of area median income). Your family may qualify and not realize it.
• Can this help my child even if they go to public school?
  • Yes. SGOs can provide scholarships for eligible students regardless of what school they attend. Federal guidelines released in October 2026, note that the Governor (who must opt-in to the program) cannot dictate that funds from the program only benefit a certain group of students.

• Gravissimum educationis – DECLARATION ON CHRISTIAN EDUCATION GRAVISSIMUM EDUCATIONIS PROCLAIMED BY HIS HOLINESS POPE PAUL VI ON OCTOBER 28, 1965
• Drawing New Maps of Hope – Apostolic Letter DRAWING NEW MAPS OF HOPE of Pope Leo XIV on the occasion of the 60th Anniversary of the Conciliar Declaration Gravissimum educationis (28 October 2025)
• Fratelli tutti – ENCYCLICAL LETTER FRATELLI TUTTI OF THE HOLY FATHER FRANCIS ON FRATERNITY AND SOCIAL FRIENDSHIP (3 October 2020)