Bill Section 70411
Over the past two years, the California Catholic Conference (CCC) has been actively engaged in national efforts to expand educational opportunity for all families. Working in close collaboration with our partners at the United States Conference of Catholic Bishops (USCCB), fellow state Catholic Conferences, and a broad coalition of parent and education advocacy groups, the CCC has remained steadfast in championing parents as the primary educators of their children and advocating for greater access, school choice, and advancing educational excellence across all learning environments.
We are pleased to share a major development: the passage of a new federal law establishing a permanent 100% Federal Scholarship Tax Credit beginning January 1, 2027. This legislation provides an opportunity to support up to two million children nationwide through financial assistance at religious, private, charter, public, and home schools.
What the Law Does:
- Creates a 100% federal tax credit for individual contributions to Scholarship Granting Organizations (SGOs)
- Applies permanently, with no sunset clause
- Allows a $1,700 cap per donor, with no national donation cap
- Requires states to opt in and annually submit a list of approved SGOs to the Treasury Department
- Limits eligible families to those earning up to 300% of the area median income
- Aligns eligible educational expenses with existing Coverdell savings account uses
This legislation reflects the CCC’s ongoing policy commitment to support families and expand access to quality education.
Next Steps:
The CCC will continue working alongside the USCCB and state partners to encourage California’s Governor to participate in this opportunity by advocating for the state to opt in and designate qualified SGOs. This step is critical to ensuring that California’s Catholic school families, and other families seeking educational choice, can benefit from this program.
Please Read:
USCCB Committee on Catholic Education Chairman Bishop Mark O'Connell released a new op-ed on the new federal school choice law and the potential implications for Catholic schools.
For more information, contact Samara Palko, Director of Education and Government Relations [email protected]