Connecticut Lags Behind as Federal Tax Credit Could Fund Struggling Schools
A 2025 federal tax credit allows taxpayers to donate up to $1,700 to scholarship granting organizations, but Connecticut has not opted in.
In 2025 Congress created the Federal Scholarship Tax Credit, an optional credit that permits taxpayers with a minimum $1,700 tax liability to donate that sum to a scholarship granting organization instead of paying the tax. The credit is cost-free to the donor and can cover any qualified elementary or secondary education expense, from books to tutoring. Participation requires a governor’s opt-in; otherwise donors can only support organizations in states that have approved the program.
By October 13, 31 states have signed on, but Connecticut has not, leaving its needy schools without this potential $270 billion-a-year funding stream. The piece references widespread criticism of public-school performance and argues the tax credit could break the link between local property taxes and school resources. The author, Christopher Rhoads, urges Connecticut to act promptly.
Why it matters
The tax credit could channel billions to under-resourced schools, but Connecticut's inaction blocks that aid.
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