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Pennsylvania Urged to Opt Into Federal Scholarship Tax Credit

(Oliver Contreras / AFP via Getty Images)

Katherine Matt is an intern for The Daily Signal.

School choice advocates and policymakers gathered at the Pennsylvania State Capitol on April 10 to call on Gov. Josh Shapiro to opt the commonwealth into the federal scholarship tax credit program before the January 2027 deadline.

Secretary of Education Linda McMahon joined lawmakers and advocacy leaders, including Rep. Scott Perry and Andrew Lewis, to emphasize what they described as a major opportunity to expand educational access without additional cost to taxpayers.

According to speakers, demand for scholarships in Pennsylvania already far exceeds supply. Nearly 70,000 applications went unfulfilled last year, highlighting what advocates say is an urgent need for expanded options for families seeking alternatives to their assigned public schools.

The federal scholarship tax credit, enacted in 2025, would allow participating states to generate scholarship funding through private donations. Advocates estimate that if just 15% of Pennsylvania taxpayers participate, the program could generate up to $500 million in scholarships, potentially serving an additional 100,000 students.

Pennsylvania, they argue, is well-positioned to implement the program quickly. The state already operates longstanding tax credit scholarship initiatives and has more than 250 scholarship organizations in place to distribute funds and assist families.

Supporters stressed that the program would come at no cost to the state or school districts, as it relies entirely on private contributions. Scholarships could be used for a wide range of educational needs, including private school tuition, tutoring, special education services, and instructional materials.

Advocates also warned that failure to opt in could put Pennsylvania at a disadvantage. Twenty-seven states have already indicated plans to participate, and officials noted that funding could flow elsewhere if the commonwealth declines to act.

“Every delay means fewer opportunities for students,” Lewis said, urging swift action.

The decision now rests with Shapiro, who must formally opt Pennsylvania into the program to unlock the potential funding and expand access to educational alternatives statewide.

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