Jewish organizations have spent decades warning that the cost of day-school education threatens the future of American Jewish life. They have raised money, commissioned studies and urged families to make enormous sacrifices. Now they have a chance to help bring a new source of scholarship funding to those families. Will they organize to make it happen?
Beginning in 2027, individuals who contribute to a qualifying scholarship-granting organization may claim a federal tax credit of up to $1,700. The organizations will use those contributions to provide scholarships for eligible K-12 students, including children attending Jewish day schools.
The words “tax credit” deserve emphasis. A charitable deduction reduces the income on which a donor is taxed. A credit reduces the tax bill itself, dollar for dollar. A $1,700 deduction might save a donor in the 24% tax bracket about $408, assuming the deduction is available. A qualifying $1,700 contribution under this program can reduce a donor’s federal income tax by $1,700.
The credit is nonrefundable, so a donor needs sufficient tax liability to use it, although an unused amount generally can be carried forward. Nor can a donor take both the credit and a charitable deduction for the same contribution. Even with those limits, this is a powerful incentive to support scholarships. A parent does not have to be the donor. Grandparents, friends and other supporters of Jewish education can contribute.
The Wall Street Journal recently cited an estimate that the program could generate $18.8 billion in scholarships if 10% of eligible donors participate. That is a projection, not money already in the bank. But it suggests what could happen if organizations give donors a clear way to help.
There is a catch. States must choose to participate and submit lists of qualified scholarship organizations. Florida has already made an advance election. As of the IRS’s Sept. 14 update, New York, New Jersey, Maryland and California had not. Those four states have substantial Jewish communities and day schools. Their failure to participate would leave families unable to receive scholarships through an organization listed in their state, even while donors elsewhere take advantage of the federal credit.
For a family on the edge of enrolling, a modest subsidy may be decisive.
New York offers grounds for hope. Gov. Kathy Hochul has said she wants the scholarship tax credit to benefit New York students. That position deserves a welcome from Jewish leaders. It also needs to become a completed state election and a list of qualified scholarship organizations. Families cannot pay tuition with a governor’s favorable statement.
The Orthodox Union and its Teach Coalition deserve credit for recognizing the opportunity early. They advocated for the federal legislation and are now working on state participation, public education and the machinery needed to turn contributions into scholarships. Teach Coalition has organized support in New York and tracks where states stand. It is doing precisely the kind of sustained work this moment requires.
It should not have to do that work alone.
Jewish federations, synagogue movements, day-school networks and local communal groups should publicly support participation and make their case to governors and legislators. That is especially urgent in New Jersey, Maryland and California. In New York, they should help ensure that Hochul follows through despite opposition. In Florida, where the state has acted, they should help schools and families make practical use of the program.
The case should reach beyond Jewish schools. Scholarships may assist eligible students with a range of educational expenses, and families in public schools can benefit as well. Jewish advocates should work with Catholic schools, other faith communities, independent schools and parents seeking help for their children. A broad coalition can explain both the value of educational choice and the value of help with tutoring and other needs.
Some opponents will call this a diversion from public education. Advocates should answer the argument on its merits.
The program relies on voluntary contributions to scholarship organizations and a federal tax credit for donors. It does not require a state to cut its public-school appropriation to issue scholarships. Students in public schools are among those who may qualify for assistance. Supporting this program does not prevent Jewish organizations from supporting strong public schools.
For the Jewish community, the need is plain. Day-school tuition can strain even a family with two incomes. One with several children may find the sums overwhelming.
Scholarships will not erase those bills, and no one should pretend that a credit of up to $1,700 per donor will solve the affordability crisis. But many donors contributing through a well-run scholarship organization can make a meaningful difference. For a family on the edge of enrolling, that difference may be decisive.
The work requires more than lobbying. Schools need to understand the rules. Scholarship organizations need to meet federal requirements and obtain a place on their state’s list. Donors need accurate information about when and how to contribute. Families need a straightforward way to apply. And Jewish organizations that have asked supporters for years to invest in the next generation should help build that path.
We often describe Jewish education as indispensable to Jewish continuity. If we mean it, we should act when public policy offers a realistic way to make that education more affordable. The OU has begun the work. The rest of the Jewish organizational world should help carry it across the finish line.
