Opinions on the Federal Scholarship Tax Credit program
The non-binding ballot item asks if Illinois should opt into the Federal Scholarship Tax Credit program.
Winnebago County voters will see two referendum issues on their March 17 ballot. One asks if the county should impose a 1% sales tax to pay for school facilities, school resource officers, and mental health professionals.
Marianne Mueller
The other non-binding referendum, without saying it specifically, asks if Illinois should opt into the Federal Scholarship Tax Credit program.
"Should Illinois opt into a federal program that would provide Public K-12, private school, and homeschool students with privately-donated funds for academic needs, such as tutoring and test preparation, educational therapies for students with disabilities, tuition, books, exam fees or for other specified academic needs?"
Similar language appears on the ballot in other counties, covering about 10% of the population.
The new Federal Scholarship Tax Credit program, part of the One Big, Beautiful Bill Act, takes effect in 2027. It allows donors to claim $1,700 in tax credits for gifts to approved Scholarship Granting Organizations (SGOs). The scholarships would cover “qualified elementary and secondary education expenses.” But states need to opt into the program to receive the money.
Supporters say that if Illinois doesn't opt into the program, that simply means donations by Illinois residents will go to other states. Mailee Smith, vice president of policy and litigation at the Illinois Policy Institute, says, "This program helps students at or below 300% of the median income level in their area, which means all low-income children in the state would be eligible for funding," including public, private, religious schools, and even home schools. Funds can be used for tutoring, special-needs services, books, supplies, tuition and more.
Opponents say the wording is misleading. They claim that a tax credit, because it essentially repays donors out of Federal funds, amounts to a back door school voucher program. Schools and donors would have to go through paperwork to set up Scholarship Granting Organizations. And since public schools don't give scholarships for tuition anyway, it makes it harder for them to use the funds. Ann C. Courter, educational issue specialist for the League of Women Voters of Illinois, says the money "likely will go to well-off parents of children already attending private religious schools."
Opposing opinions on the Federal Scholarship Tax Credit program
Josh Bandoch
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