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Time to Decide: The Federal Education Tax Credit Regulations Are Out!

For months, Democrat governors have been waiting for federal regulations before deciding whether to participate in the new federal education tax credit. We thought that was smart to wait for the fine print… which was supposed to come out in June… then we heard July… then September… And they were finally released yesterday!

We’re still reviewing them too and getting other experts’ input and we expect to have updates on this blog as we learn more. Nothing the regulations changes our perspective that Illinois should opt in ASAP and maximize the potential for public school students. Read our September policy brief here.

Dear Democrat Governors:

Opt in to fight back! This administration has systematically done all it could to kick our citizens off of Medicaid, our immigrant neighbors out of their homes, our families off food assistance, and our young learners out of preschool, while doubling down on record-setting ICE spending to terrorize our people in the streets.

When Illinois taxpayers are presented the option to give $1,700 to the failed Trump administration or divert it to public school kids in Illinois, the kids will win. But only if taxpayers know about it.

And you, Democrat Governors, have the power to make sure they know about it: make automatic payroll deductions easy for state employees and pensioners, ask your largest employers to do the same, partner with a state-wide scholarship organization that is aligned with state goals for equity and outcomes, and trumpet from the rooftops that this is a show of our frustration with this administration.

You don’t have to like the law to leverage the law to restore some resources to public school students.

For now, here’s a top-level summary of the program and our main takeaways so far:

Summary of the Program 

It is hard to overstate the potential of the federal education tax credit to funnel hundreds of millions – perhaps billions – of dollars to support public school students to access tutoring, enrichment, after-school programs, summer learning, and other supports. The range of potential funds varies so greatly because it all depends on how organized we can get; strong partnerships among schools, service providers, SGOs, families, and employers will generate exponentially more funds for students than one-off haphazard efforts.

All federal taxpayers can choose to divert $1,700 of their federal tax liability to a qualified “Scholarship Granting Organization” (SGO). This is a dollar-for-dollar tax credit. Governors cannot opt out their taxpayers from the federal education tax credit, but they can opt out their kids. All Republican-led states have opted in. Seven Democrat-Governed states will participate, either because they are opting in (CO and NY), their predecessor opted in (VA), or their Republican legislatures passed a law (KS, KY, and NC). If Illinois students are going to participate, Gov. Pritzker needs to opt in by December 31.

SGOs strike me as both extremely powerful operatives and fairly boring bureaucrats. On one hand, they are the lynchpin: taxpayers donate to an SGO of their choice and the SGO awards scholarships to students, according to the mission the SGO envisions. But on the other hand, they are middlepeople; they keep the books and manage the money, but they don’t provide any service themselves. SGOs “qualify” by meeting minimal federal requirements (like spending 90%+ of their resources on scholarships, being a non-profit, and awarding scholarships to 10+ students at 2+ schools from families earning less than 300% Area Median Income) and being added to a participating governor’s SGO list.

Summary of the Regulations 

  • States Cannot Set Stronger Rules for SGOs. The major question on many of our minds was whether states could impose stronger regulations on SGOs than the federal minimum guidelines, which are notably silent on discrimination and accountability. Consistent with the previews sent in June, states are pretty limited on what they can do here. (Though we did learn that states can remove an SGO mid-way through the year if it is not meeting requirements, so that’s not nothing.) On the whole though, this is unfortunate: we wanted states to be able to have stronger criteria, like lower income thresholds for students awarded scholarships, prohibitions against discrimination from service providers, and stronger accountability for student outcomes.
  • But SGOs Can Set Stronger Rules for Themselves. There was some question whether SGOs could restrict scholarships more narrowly than the federal law, and the regulations affirm they can. So, while the State cannot bar an SGO from its list because it grants private school scholarships, an SGOs can decide to only award scholarships to public school students.
  • Married Taxpayers Can Each Give $1,700. There have been widely varied estimates of how much the program could generate, in part because it was unclear whether married taxpayers could only give $1,700 jointly or if both could give $1,700. Both can. (So now the estimates will still be varied because it depends heavily on how many taxpayers will participate, but at least we have some clarity on one big variable.)
  • SGOs Have Some Flexibility During Start-Up. This is good news for public schools! Private school SGOs already exist, while public school SGOs are largely new. And for Democrat states that have waited so long to opt-in, this is even more important. SGOs can go on the Governor’s list even if they have applied as a non-profit, even if it hasn’t been licensed yet. The regulations are fairly stringent about SGOs having a primary purpose of granting scholarships; some non-profits that were thinking they could create a separate account for scholarships while continuing to serve a different primary purpose will need to create a separate 501(c)(3) – so that flexibility will be welcome. The law requires SGOs to spend 90% of revenue on scholarships, but a new SGO would have upfront costs before it even begins awarding scholarships. Regulations still require the 90% threshold to be met, but SGOs have until year two to meet it.
  • Allowable Uses… Some Still TBD. We know from the regulations that this is for K-12 students, and that an incoming K-12 student can access a summer program. We know it can’t be for new football jerseys because that’s not primarily academic. But there are a lot of unknowns in the area of allowable uses and forthcoming guidance will be released at some point. So there are gray areas – like piano lessons and debate club – that might work the first year, but be more clearly defined in the second.

What Else?

Let us know in the comments if you have other questions and we’ll track down the answers. If you’re curious for more information, check out our policy brief and October 5, 2026 webinar. If you are exploring starting or partnering with an SGO, we recommend this toolkit from the National Association of Education Foundations and American Association of School Administrators that gets way into the weeds.

If you haven’t signed our petition, click here. We’ll be watching for opt-ins (which at this point, might be more likely after the election November 3) and keep this updated as we dig deeper into the regulation.

LEARN MORE 

Do you have any questions? Leave a comment below, and we will gladly provide more information!

Election day is november 3, 2026

Our schools are on the ballot

Students need support in and outside of the classroom – that means voting with a commitment to the success of our students.

From elections at the highest level to local, down-ballot races, education is always on the ballot. Make your voice heard and vote in support of students, teachers, and high-quality public schools.

Make a Plan To Vote

  • August 5, 2026: First day to apply for a mail in ballot.
  • September 24, 2026: First day to vote early or by mail. Check with your local election authority for details.
  • October 6, 2026: Last day to register to vote by paper. Online voter registration remains open.
  • October 7, 2026: First day of grace period for in-person voter registration; continues through Election Day.
  • October 18, 2026: Last day for online voter registration. Grace period for in-person voter registration is still available.
  • October 29, 2026: Last day for election authority to receive vote by mail applications.
  • November 3, 2026: Election Day! Polls are open from 6:00 am to 7:00 pm.

Want to triple your impact? Share this page with 3 friends or family members and encourage them to register to vote, turn in their ballots, or make an election day plan!

HIGH SCHOOL READINESS:
PREPARED FOR LIFE

RETHINKING POST-GRADUATION READINESS

High school should prepare students for life after graduation—whether that’s attending a 4-year university, enrolling in an apprenticeship program, or earning a credential through a community college. But we know that life after graduation is rarely linear for any of us and students’ post-graduation paths may take them in and out of the workplace as they pursue additional certifications or change industries.

Yet, both the data we collect to mark success and the requirements we set to graduate all put an outsized focus on one path: university enrollment. While Illinois should continue to make it easier for students to access college, the high school experience should be as unique and diverse as Illinois’ students and the futures they choose.

CHRONIC ABSENTEEISM RATES BY STUDENT GROUP

There is mounting evidence that the traditional high school experience is falling flat with Illinois teens. Chronic absenteeism is stubbornly high for all grades, but particularly problematic in high school. Statewide, nearly half of all senior high school students are chronically absent, meaning they are missing 10% or more of school days. (Illinois Report Card)

Chronic absenteeism is a worsening problem for many Illinois subgroups, particularly students of color and students from low-income households. Layering these statewide findings with national research that tell us students who are more engaged in the classroom are significantly more likely to feel prepared for and optimistic about their futures and less likely to be chronically absent from school (Walton Family Foundation-Gallup 2025).

This new generation of students are excited to explore career paths that are more likely to take them to trade school than university. The number of students at public, two-year schools that focus on vocational and trade programs grew by nearly 20 percent from 2020 to 2025 (National Student Clearinghouse 2025).

Illinois high school graduation requirements prioritize coursework designed for 4-year college admissions but offer very little flexibility for high-quality experiences like apprenticeships and career and technical education (CTE) courses.

CTE courses have come a long way from the traditional shop and culinary classes you may remember from high school. Today, CTE courses connect students with local employers through internships, offer hands-on learning through state-of-the-art facilities, and empower students to earn employer-recognized credentials while graduating high school.

HIGH-QUALITY CTE COURSES DO 3 POWERFUL THINGS FOR STUDENTS:

  1. Connects students to employers for networking and mentoring and to develop soft skills.
    • A 2023 survey found that only 13% of teens felt that they had the resources they needed to fully prepare them for life after graduation (ECMC Group 2023). Connecting students with employers not only gives them a window into their future careers but also offers mentorship opportunities and career exploration—two critical resources to help students envision a future beyond the experience of their neighborhood or families.
  2. Provides value immediately upon graduation.
    • The best CTE programs align with industry standards and postsecondary coursework so young people can fluidly move from the workforce to postsecondary education and back again as they level up their skills or transition industries. Many CTE programs serve as a map for life after graduation by loading students up with pre-requisites for postsecondary coursework, early college credit, and offers career exploration across an industry so students can envision themselves in multiple jobs within an industry instead of pigeonholing them in entry level positions.
  3. Embeds essential academic competencies in career-centric coursework that aligns with student’s interests.
    • CTE is no longer just for skilled trades. Outstanding CTE programs in computer science, engineering, and healthcare use industry-professional instructors to teach students foundational skills through hands-on learning, team-based challenges, and technical applications. These 21st Century CTE programs prepare students for both the rigors of college while offering career exploration, unlike traditional coursework. A future doctor will find CTE coursework as valuable as the future certified nurse assistant.

But CTE opportunities remain sidelined as students struggle to fit CTE course sequences into schedules revolving around the state’s high school graduation requirements. Gone are the days of single-semester CTE courses. Today, most CTE courses are one of a sequence that may require two (or more) years to complete and typically involve traveling off campus to work directly with employers or learn at a separate facility. And of course, all of this requires funding.

In FY26, the state allocated $51M in CTE funds, which amounted to an average of $70 per high school student—not nearly enough to fully support these programs. Of course, a lack of state funding means a lack of equitable access as high-income districts use local resources to expand CTE opportunities for students, low-income communities struggle to re-envision outdated legacy programs or introduce new industries, like energy, that may not have existed
decades before.

Finally, our data systems allow for one measure of student success: college enrollment. If we only offer one measure of success, it’s no wonder that’s where schools are putting their efforts. Collecting and reporting on data that showed job placement rates or secondary credential attainment could help schools define new measures of success and build programs to help them achieve. Illinois has an opportunity to redefine what it means for students to be ready for life after high school. By modernizing graduation requirements, investing in high-quality CTE programs, and measuring success through multiple
postsecondary pathways—not just college enrollment—we can create a system that prepares every student for the future they choose, not just the one we’ve traditionally expected.

Karina Donayre

[email protected]

(312) 715 – 7612


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STAND FOR CHILDREN IL PAC ANNOUNCES GENERAL ELECTIONS ENDORSEMENTS

Stand for Children IL PAC, a bi-partisan state political action committee, released today its endorsements for the 2026 General Elections. The following candidates are endorsed:

“We are proud to endorse these education champions who are committed to educational success for all Illinois students. These candidates are dedicated to working collaboratively when addressing evidence-based literacy, adequate and equitable school funding, and meaningful early college and career training opportunities,” said Jessica Handy, Chair of Stand for Children IL PAC.

For the 2026 General Elections, only legislative candidates in contested general races were eligible for consideration for endorsement by Stand for Children IL PAC. Stand for Children is a unique catalyst for educational success and social progress to create a brighter future for us all.

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Paid for by Stand for Children IL PAC.

Flipping the Script:
Making Scholarships Work for Public School Kids

Background 

In 2027, a federal tax credit will take effect, allowing taxpayers across the U.S., including Illinois, to claim a tax credit of up to $1,700 for donating to student funding. IL taxpayers could have the potential to redirect up to $6 billion of their federal taxes from the IRS to student funding. But Illinois students will only be able to access those resources if the state “opts in” to the program. The decision to participate rests with Governor Pritzker.

Sign our petition 

Policy Brief 

The Stand for Children’s work group created a recommendations report to highlight the key players (policy makers, school leaders, SGOs, etc.) capable of ensuring public school students who need it the most benefit from this program.

Next Steps 

The Federal Tax Credit Scholarship Program will only benefit public school students if we all work together to make sure these funds reach them. We are looking for more community advocates, school leaders, and organizations who would like to join our work. Sign our petition above and share it with your networks! Don’t forget to tag us if you post on social media.

LEARN MORE 

Do you have any questions? Leave a comment below, and we will gladly provide more information!

Congratulations, Fellows!

Earlier this summer, we began a fellowship for high school students to explore and learn about the impact of having access to career exploration programs in high school. While our fellows learned about the importance of advocacy, the power of storytelling, and how the education system impacts their high school experience, we learned about their goals and who supported them through the process of finding a career pathway after graduation.

Class of 2026 Fellows 

Travon Anderson

“How I got introduced to CTE was through my school’s career days… I want to be an HVAC tech and probably do residential.”

During high school, Travon felt unsure of what he wanted to do after graduation. As a senior, he tried some classes that interested him, and his brother-in-law connected him to Developing Our Youth, a community organization helping students in his area explore career options. While getting a haircut, his barber mentioned HVAC as a reliable career option. Travon has decided to pursue a career as an HVAC technician and is looking forward to working on getting his OSHA certification. He is thankful to have the support of his sister and his mom throughout the career exploration process.

Dulce Cardenas

“When I moved to Illinois, everybody wanted to help… While at my old school, I felt like I was kind of alone. No one was there to tell me what to do, or what I can do [after graduation].”

Dulce moved from a small town out-of-state to a big school in IL during her freshman year. That is when she noticed nearly all of her peers already had a career plan for after graduation. Her school district begins career exploration for students in middle school. By the time students get to high school, many of them have already chosen a career path.

While she felt behind, she always knew she was interested in the medical field. Through the HOSA program in her school, she was able to take multiple AP/dual credit classes and programs to explore a career in the medical field. She has decided to pursue a career as a radiology nurse and is thankful to have the support from her teacher at the HOSA program.

Kailani Fish

“My teachers who have supported me so much… They helped me and made me feel seen and cared for, and I realized that’s the impact I want to have.”

Kailani began exploring different career options in high school when she was connected to various CTE and Dual Credit classes. She followed her interest in working with children and discovered she wanted to be an elementary school teacher. Through her courses, she learned about early childhood education and gained work-based experience working with teachers in their classrooms.

She will take her class credits and clinical hours with her to a community college in the fall. Kailani is passionate about advocating for CTE and Dual Credit courses to be available for all high school students because she has seen the positive impact they have had on her and her peers. She is thankful to have the support from her high school teachers during this career exploration process.

Israel Garcia

“My sophomore year I started taking intro to coding and I really enjoyed it, so I continued on that pathway. My senior year, the CCRC program helped me get an internship in IT for a park district in Aurora… that’s when I knew this is something I want to do as a career.”

Israel began taking CTE classes after connecting with his school’s College & Career Readiness Center (CCRC). He had the opportunity to try a variety of career exploration classes and enjoyed computer science the most. CCRC helped him get an internship with his district’s IT department. He is excited to pursue a career in cybersecurity and continue his education in computer science. He is thankful to have the support from CCRC, and his internship supervisor and coworkers during his career exploration journey.

Grace Laubscher

“Through this opportunity, I hope to expand my understanding of the Illinois education system. I plan to share my experiences and understanding to better support Illinois students accurately.”

Grace began exploring different career paths as a freshman. She has been able to take advantage of multiple dual credit classes, CTE classes, and hands-on learning experiences. After these diverse experiences, she discovered her love for education and will pursue a career as a middle school math & science teacher. She has become a leader in her school through multiple clubs and an advocate for education. Grace encourages all high school students to take advantage of any opportunity and try new things because you never know what you will discover.

Khushi Patel

“I talked to my college and career center… they connected me with an internship… and I think that’s what pushed me to go to college for civil engineering”

Kushi began exploring engineering classes at her high school and discovered she wanted to pursue it as a career. When she was connected to her school’s college and career center, she took advantage of their internship program. She worked with two engineering companies as an intern and gained valuable professional work experience. She is excited to study civil engineering in college and is thankful for having the support of her college and career counselor in this process.

Check out Khushi’s final video project!

Reginald (Reggie) Postlewaite

“When I started playing basketball and making more friends, I started getting comfortable… [My friends and I] had the same goals in the classroom and on the basketball court… It made it easier for us to push each other to complete our goals.”

As a freshman, Reggie felt nervous and a bit lost in a new school. Basketball helped him connect with his teammates and support each other in achieving their goals. They focused on working together as a team and winning games while focusing on school and getting straight ‘A’s. Reggie enjoyed his computer science class and decided to pursue it as a career. He is excited to continue basketball in college and pursue a career in computer science. He is thankful to have support from his mom throughout his academic and career exploration journey.

Bianca Wojnowska

“As I saw through my internship at the law firm, alot of people in this community are struggling… and that makes me passionate to go into the field of law and get people the representation they need.”

As a freshman, Bianca began exploring careers through her high school classes, and she enjoyed her Law class the most. She joined her school’s mock trial team and internship program. She was able to intern at a law firm and legal aid clinic. Her internship experiences allowed her to explore the impact of law and how she could support her community by representing people who need it the most. She is grateful to have participated in the internship program and have an internship coordinator who has connected her with many opportunities. She is looking forward to pursuing a career as a lawyer.

Final Thoughts

Their stories are unique and diverse, but they all showcase a student’s need to have a support system to achieve their goals. These students relied on counselors, mentors, college & career centers, teachers, and family members to support them in the career exploration process. Our students made the most of their high school experience, but they did not all have access to the same resources. What if all Illinois students could have access to the same career exploration resources? In a state where most high school graduating seniors do not attend a 4-year university within 12 months of graduation, we need to ensure all students are receiving adequate support in career exploration beyond the traditional college application process. We are proud that our fellows became a part of our advocacy work for high school success.

*Oftentimes, one size doesn’t fit all. In the same way our students have different career paths, they also have different image sizes!

pig bank with graduation hat, pencils in a cup, and book in front of a school board.

Federal Tax Credit Scholarships Working Group Values Statement

The #1 question guiding our discussion: How can Illinois maximize the new scholarship opportunity equitably for the benefit of public school students?

Background 

In 2027, a federal tax credit will take effect allowing taxpayers across the United States, including in Illinois, to claim a credit of up to $1,700 for donating to qualified Scholarship Granting Organizations (SGOs). SGOs can award scholarships to cover a wide variety of expenses, from student enrollment in public school services to private school tuition. Final Department of Treasury regulations are anticipated in September. A preview of guidance was released in June. If every eligible Illinois taxpayer contributed, the program would generate about $6 billion.

About the Working Group 

After Stand for Children’s June 10 townhall, we convened a coalition of public education advocates to rapidly examine how Illinois might take the controversial federal education tax credit and turn it into funding to support evidence-based programs for students in need. Given that 90% of students attend public schools, statewide education advocates have a responsibility to try to design creative, innovative, values-based approaches to turn these funds into positive educational outcomes.

The question before us is not whether to create the program—it already exists. The question before us is whether Illinois students should be able to access scholarship funds. There are high-impact tutoring organizations, disability service providers, vocational training programs, and after-school and summer programs ready to use the funds to impact Illinois children. Illinois taxpayers can contribute to SGOs and take the dollar-for-dollar tax credit regardless of whether Illinois opts in; however, opting in is the only way scholarship funds become available to Illinois students.

Our Guiding Values 

We believe:

  • Illinois taxpayers will invest significantly in new tax credits, whether or not Governor Pritzker opts in, and Illinois students should be able to access those resources. At the same time, the design of the federal program was not centered around equity, and Illinois has an opportunity and a responsibility to elevate equity through intentionality.
  • Public school students, particularly those with the most needs in the most under-resourced schools, deserve equitable access to resources.
  • Scholarship Granting Organizations (SGOs) that accept funding in exchange for tax credits and scholarship-accepting organizations must be held to high standards of ethics so maximal funds reach students through high-quality, evidence-based programing with no waste, fraud, or abuse.
  • SGOs already exist for private school tuition scholarships, but there is minimal infrastructure to support public-school-centric SGOs; the longer we wait to decide whether to opt in, the harder it will be to stand up new SGOs.
  • Illinois students – not politics – should be at the heart of this conversation.

Our Next Steps 

We anticipate developing recommendations for Illinois’ response to the federal tax credit scholarship program by early September. Ideally, federal regulations will be available by then; however, we are cognizant that the more we delay a decision, the further behind the curve public school-supporting SGOs will be in getting up and running.

Do high schoolers feel prepared for life after graduation?

On average, 60% of Illinois high school graduates do not enroll in a 4-year university within 12 months of graduation at a traditional 4-year institution. Most graduates in Illinois go directly into the workforce, enroll in community college, attend trade schools, or pursue other career alternatives. With this in mind, is our education system adequately preparing students for life after graduation? If we were to ask students, do they feel prepared for life after graduation?

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Our summer fellowship for high school students and recent graduates focuses on addressing this topic. Illinois high schools and districts offer a variety of CTE, Dual Credit, and Work-Based Learning programs. Some high schools support students by connecting them to internships, career fairs, and employers. These programs and resources allow students to explore a variety of interests that could potentially lead them into a career or guide their next steps after graduation.

Jonathan Royer is a current high school junior who already knows what he wants to do after graduation. He discovered his passion when his school connected him with Springfield’s Capital Area Career Center and eventually 4-H. He began exploring interests like robotics, photography, advocacy and eventually led him to decide he wanted to become a mechanic.

“4H has really helped me a lot. It’s allowed me so many opportunities. I’ve attended conferences in Washington, DC… It’s a great program and it has allowed me to find my passion in auto tech.” Jonathan Royer

However, not all students in Illinois have access to these resources and programs across the state. Depending on the school district, some students have access to individualized mentorship, internship programs, advocacy organizations, career centers, trade schools, and more. While other students might be on their own to figure out a plan or rely on their own family networks to get that first job right after high school. One thing is true:

Illinois high school students do not receive the same opportunities and support to find their next step after graduation.

Our summer fellows represent the diverse backgrounds and experiences of Illinois high school students. They bring their own unique experiences, stories, and goals for what they want to accomplish after graduation. With their help, we will receive an insight into how our current education policies have impacted their lives, and how prepared they feel for graduation.

By equipping our fellows with the knowledge and tools to advocate for change, we hope to support the young generation of leaders embarking on their new journey into adulthood. We look forward to their final projects and insights into what Illinois can do to best support students in graduation readiness.