U.S. Treasury Removed Shapiro’s Last Excuse on School Choice

The U.S. Department of the Treasury released long-awaited details on the new Federal Scholarship Tax Credit —and it’s exactly the kind of clarity Gov. Josh Shapiro claimed he was waiting on

In January, Shapiro told Education Week that his team was “awaiting federal regulations from the U.S. Department of the Treasury that will iron out more specifics.”

Well, the wait is over, Mr. Governor. Ask, and you shall receive!

To recap, starting in January 2027, the federal tax credit will allow any taxpayer to donate to scholarship organizations and receive up to $1,700 in federal tax credits. Those donations fund scholarships for students in public or private schools, covering tuition, fees, tutoring, special-needs services, books, and supplies.

The Treasury’s preview guidance addresses scholarship requirements, income eligibility, donation tracking, and how the federal government plans to ensure transparency and prevent fraud. In short, the questions Shapiro said he needed answered before deciding have now been answered.

Truthfully, this should have been a no-brainer decision well before this announcement. Thousands of Pennsylvanian students stand to benefit from the millions of dollars in scholarships this program will generate.

Plus, opting in will prove to be a light lift for Pennsylvania. The program will cost the state nothing to participate. And given that Pennsylvania already runs two of the most successful tax-credit scholarship programs in the country, the commonwealth already has more than 250 organizations primed and ready to award scholarships.

The clock is ticking.

As of this month, 31 states have already signaled their intention to opt in, including neighbors New York, Ohio, and West Virginia, as well as nearby Virginia. Assuredly, Shapiro has until the end of the year to decide, but why wait? With this decision, families can start planning for the upcoming school year, and scholarship organizations can help them figure out how to afford tuition.

If Shapiro continues to sit on his hands, the cost to Pennsylvania families is real. Pennsylvania students could receive between $32 million and $967 million in aid, according to projections from Education Reform Now.

But if the governor doesn’t opt in, that funding would simply flow to other states, leaving Pennsylvania families behind. Turning down millions of dollars to help public and private school kids makes no sense.

If Shapiro has any lingering concerns about the guidelines, he needs to voice them now. Pennsylvania families have waited long enough. And now is the time for him to act before Pennsylvania kids fall further behind because of Governor Shapiro’s failure to deliver.