Education Freedom Tax Credit Fact Sheet
Reading time: approximately 6 minutes
Education Freedom Tax Credit fact Sheet
Click on the graphic above to see the Federal Education Freedom Tax Credit rules and operation.
Opt New Jersey Into the Federal Education Freedom Tax Credit Before Our Children Are Left Further Behind
By Rev. Gregory Quinlan
Founder and President, Center for Garden State Families
New York Governor Kathy Hochul has done what New Jersey’s families need Governor Mikie Sherrill to do: opt her state into President Trump’s Education Freedom Tax Credit, even over the loud opposition of teachers’ unions.
This is not a traditional voucher that raids public school budgets. It is a voluntary federal tax credit that lets individual taxpayers redirect up to $1,700 of their own federal tax liability ($3,400 for married couples filing jointly) to nonprofit Scholarship Granting Organizations (SGOs). Those SGOs then award scholarships for K-12 expenses—private or religious school tuition, tutoring for public school students, special education services, books, supplies, and extended-day programs. Roughly 95 percent of American children live in households that meet the 300 percent of area median income eligibility threshold. The program costs New Jersey taxpayers nothing and does not divert a single dollar from state or local school funding. It is new charitable money supporting education.
Hochul reviewed the Treasury and IRS rules released in early October 2026 and concluded the program can help public and private school students alike without harming public budgets. She said she was “not going to leave money on the table when it could help our kids.” Colorado’s Democratic Governor Jared Polis had already opted in. More than half the states are participating or committed. New Jersey has until January 1, 2027, to elect in and must submit its list of approved SGOs by February 15. If we stay out, New Jersey residents can still claim the credit—but their donations will fund scholarships in other states while our own children get nothing.
New Jersey’s Government Schools Are in Decline
The need is urgent. New Jersey spends heavily yet delivers mediocre or worse results, especially for the children who need alternatives most.
In Newark, the state’s largest district, English language arts proficiency sits around 34 percent and math around 22 percent—well below statewide averages. A recent state audit flagged millions in potential waste, including inflated enrollment claims and questionable spending, and referred some matters for possible criminal review.
Reading is in crisis. As many as 60 percent of third-graders statewide are not reading at grade level; in the poorest districts, the numbers are far worse. Third-grade reading is a critical threshold; children who miss it fall further behind across subjects and face a higher risk of dropping out. New Jersey has been among the last states to fully embrace the science of reading, in part because of local control and resistance from the teachers’ union.
Student academic growth rankings are disappointing relative to spending. Districts such as Camden, Trenton, and Asbury Park show abysmal proficiency rates in core subjects despite high per-pupil spending. Violence, chronic absenteeism, and fiscal problems persist even under state intervention in some cases.
Parents are voting with their feet—homeschooling and private options have grown as families reject what they see in government schools. High spending has not produced the outcomes former Governor Murphy and the NJEA claim.
The NJEA’s Indoctrination Agenda and Political Power
The New Jersey Education Association—what I have long called the New Jersey Exploitation Association—prioritizes politics, ideology, and institutional power over measurable academic results for children.
NJEA has poured tens of millions in member dues into political efforts, including roughly $40 million into a super PAC backing its own former president’s gubernatorial bid. Its conventions and advocacy frequently emphasize social and political topics more than instructional excellence or student achievement. It has resisted accountability measures and science-based reading reforms, preferring teacher discretion even when evidence points elsewhere. Opposition to the Education Freedom Tax Credit follows the national teachers’ union pattern: protect the monopoly rather than expand options that let parents escape failing or ideologically driven environments.
Unions and their allies claim the program will somehow harm public schools. The federal fact sheet and the program’s design say the opposite: it adds private charitable dollars and does not reduce existing public funding. Research on school choice programs shows competitive effects that often improve public school outcomes, higher parental satisfaction, and better attainment for many participants.
Governor Sherrill has said she prioritizes strong public schools. Opting in does not conflict with that. It lets public school families access tutoring and supports while giving other families the ability to choose schools that match their values and their children’s needs—exactly the parental rights and educational freedom the Center for Garden State Families has long defended.
Neighboring New York under a Democratic governor has already said yes. New Jersey should not leave hundreds of millions in potential scholarship support on the table while our children remain trapped in underperforming systems.
Governor Sherrill: Opt New Jersey in by January 1, 2027. Do not let the New Jersey Exploitation Association (NJEA) dictate the future of our children’s education.
In a nutshell
The Issue
New Jersey must decide by January 1, 2027, whether to opt into the federal Education Freedom Tax Credit. This program lets taxpayers claim a dollar-for-dollar federal tax credit of up to $1,700 ($3,400 for married couples) for donations to Scholarship Granting Organizations. Those organizations award scholarships for K-12 expenses—private or religious school tuition, tutoring (including for public school students), special education services, books, supplies, and more. New York Governor Hochul has already opted in. Governor Sherrill has not yet acted.
How This Affects You and Your Family
If New Jersey opts in, eligible families (most households) can access new scholarship dollars for the educational options that best fit their children—whether that means a different school, tutoring to catch up, or extra support. If the state stays out, New Jersey residents can still claim the federal credit, but their donations will fund scholarships in other states while our own children receive nothing. Parents who want alternatives to underperforming government schools or who simply need help covering educational costs lose a major opportunity at zero cost to the state budget.
How Your Action Makes an Impact
Contacting Governor Sherrill and urging her to opt New Jersey in by January 1 directly pressures her to unlock hundreds of millions in potential scholarship support for Garden State families. Every message reinforces that parents—not the NJEA—should decide how their children are educated and that New Jersey should not leave this federal opportunity on the table. Collective advocacy has already moved other governors; it can move ours.
Here is the link to the fact sheet from the United States Department of the Treasury and the United States Department of Education: https://www.ed.gov/media/document/education-freedom-tax-credit-fact-sheet-113147.pdf
Take action below and call the governor at 609-292-6000