With a new federal scholarship program scheduled to begin January 1, 2027, Senate Republicans are renewing their call for Illinois to participate and provide families with access to additional educational opportunities.
The Federal Scholarship Tax Credit program creates a federal tax credit of up to $1,700 for qualifying private contributions to scholarship granting organizations. Those organizations can then provide scholarships to eligible students for qualified elementary and secondary education expenses.
Participation by individual states is voluntary. According to the Internal Revenue Service, 30 states have formally made advance elections to participate in the program for 2027 as of September 14. Illinois is not currently among them.
The federal program does not take money out of existing Illinois public school appropriations. Instead, scholarships are supported through private contributions incentivized by the new
federal tax credit. Senate Republicans say participating in the program and continuing to support Illinois public schools are not mutually exclusive.
Senate Republicans have introduced legislation to ensure Illinois participates. Senate Bill 3850 would require the Governor, by January 1, 2027, and annually thereafter, to submit the required list of scholarship-granting organizations to the federal government.
Under current federal guidance, participating states must provide the IRS with a list of qualifying scholarship-granting organizations. For 2027, the IRS says that list must be provided by January 1, 2027, or as early as practicable.
Illinois should not wait until the last minute to provide families with certainty. 30 states have already chosen to move forward, and Illinois should do the same so families have access to another tool that could help children receive the educational opportunities and resources they need to succeed.
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