U.S. Treasury Releases New Guidelines on Federal Scholarship Program 

New guidance answers concerns about the federal program and removes excuses for Gov. Josh Shapiro’s indecision. 

Harrisburg, Pa., June 11, 2026 — Yesterday, the U.S. Department of the Treasury released new guidance regarding the federal scholarship tax credit program, which passed into law in July 2025.

This guidance, while not final regulations, provides clarity and alleviates questions about implementing the new program. 

The newly released guidelines address scholarship requirements, income eligibility, donation tracking, and the administration’s plans for providing transparency and preventing fraud and abuse. 

As of June 2026, 31 states have expressed their intent to opt into the program. 

Pennsylvania’s Gov. Josh Shapiro has yet to decide whether to opt the commonwealth in. Governors have until January 1, 2027, to opt their states into the program. But advance notice allows scholarship organizations to prepare to work with schools, families, and donors and to hit the ground running in the new year. 

Commonwealth Foundation Chief Policy Officer Nathan Benefield issued the following statement: 

“The guideline preview released by the Treasury further solidifies that the Federal Scholarship Tax Credit is a no-brainer. Thousands of Pennsylvania students will benefit, and the lift is low given the state’s existing tax-credit programs.  

“If the governor has lingering concerns with these guidelines, he needs to express what those concerns are now, while regulations are being finalized. Governor Shapiro must join the 31 other states, governed by both parties, to opt Pennsylvania into the federal program.  

“If Shapiro doesn’t act, Pennsylvania could lose out on $500 million in donations and scholarships for tens of thousands of low- and middle-income students.”  

“Hiding behind the excuse that he is awaiting federal guidance is a fruitless endeavor when the future of thousands of students’ education hinges on the governor’s opt in.” 

Key facts about the Federal Scholarship Tax Credit

• Beginning in January 2027, any taxpayer can donate to a scholarship organization and receive up to a $1,700 tax credit.  
• This tax credit will provide students—in public or private school—with scholarships for tuition, fees, tutoring, special-needs services, books, or supplies. 
• There is no cost for the state or for school districts. 
• Pennsylvania has more than 250 scholarship organizations that are ready and eager to participate, but they are waiting on Governor Shapiro to act. 
• According to Democrats for Education Reform, even if 15 percent of taxpayers participate, the new program could generate $500 million in scholarships for Pennsylvania kids. 
• If Pennsylvania doesn’t opt in, that money would flow to other states. 

For media inquiries, please contact Giana DePaul at gmd@commonwealthfoundation.org or (215) 859-0384.