Gov. JB Pritzker has not said whether he plans to opt Illinois in to the Federal Tax Credit Scholarship Program, which officially launches Jan. 1. Scholarships from the program are not currently available for students within the state.
Many school districts and private school systems throughout Illinois are struggling financially. The state provides some funds for public education, but it also has budgetary issues.
Education is a high priority for most people. However, some parents are concerned about the progress their children are making in school. There are problems throughout Illinois with students not achieving grade level in reading and mathematics. Accordingly, this would certainly seem to be a time to be creative in providing resources for education in Illinois.
Fortunately, last year, Congress enacted the Federal Tax Credit Scholarship Program. Comptroller Susana Mendoza has estimated that this program could bring $100 million into the Illinois educational system. If Illinois taxpayers are creative enough, her estimate could be very conservative.
Under the law, these scholarships will constitute tax-free income for the recipients and their families and provide a tax credit up to $1,700 for an Illinois taxpayer on his or her federal tax return.
According to Congress.gov, “[u]nder the program, taxpayers will be eligible to receive a tax credit of up to $1,700 for the value of cash contributions to certain scholarship granting organizations (SGOs) [which] will be required to use these contributions to grant scholarships to students at private and public elementary and secondary schools located within their states.”
Qualified expenses include tuition, fees, books, supplies, other equipment, academic tutoring and special needs services that are incurred by the beneficiary in connection with enrollment or attendance as an elementary or secondary school student at a public, private or religious school. Transportation and supplementary items and services (including extended-day programs) are also included if these expenses are required or provided by a public, private or religious school in connection with enrollment or attendance, along with computer technology, equipment or internet access and related services if used by the beneficiary in elementary or secondary school.
Two facts should be clear from the foregoing. First, the program can benefit students at both private and public schools and, second, the program has no adverse impact on existing funding for public schools in Illinois.
Unfortunately, some liberal groups, in opposing the program, have mischaracterized the program, leading Gov. JB Pritzker to hesitate before opting in for Illinois. For example, the Chicago Teachers Union induced the Chicago School Board to oppose the program by characterizing it as a “voucher” program.
Nothing could be further from the truth. Traditional voucher programs divert state or local funds to benefit private schools, arguably reducing funding available for public schools.
In contrast, the federal tax scholarship program enables Illinois citizens to redirect their tax payments, which otherwise would go to the federal government in Washington D.C., to support educational services in Illinois.
Everybody who is concerned about educating our students should welcome a program that would enable, for example, extensive tutoring programs for Illinois students, whether in public or private schools. The program could also provide books and computers for students, or transportation or special needs services.
What is needed is some creativity in developing scholarship programs that would help our grammar and high school students to excel.
While some people may be philosophically opposed to the federal government being involved in education, the fact of the matter is that the program does exist and the question is simply whether or not Illinois students will benefit from the program.
If there was ever a win-win situation for education in Illinois, this is certainly it. We should all encourage Pritzker to adopt this program in Illinois.
Charles W. Murdock was formerly dean of Loyola Law School and deputy attorney general for the state of Illinois. While teaching at Notre Dame, he helped found the National Center for Law and the Handicapped. He also served as a U.S. Marine Corps officer and pilot. He has published numerous law review articles and a two-volume treatise on business organizations, along with articles on international trade. He currently resides in Wilmette, Illinois.
This article appears in November 12-18, 2026.
