Expanding Access to Jewish Day Schools in Greater Washington
A New Federal Opportunity to Support Jewish Day School Access
A new federal income tax credit taking effect in 2027 may create an additional mechanism for individuals to support scholarship funding at public and non-public K–12 schools, including Jewish day schools in Greater Washington.
As part of a coordinated regional effort led by The Jewish Federation of Greater Washington, and in partnership with Jewish day schools across the region, we are preparing to participate in this new federal program in a way that aligns with our shared commitment to strong, sustainable Jewish education.
Rather than navigating this independently, schools are working alongside Federation to ensure the program is implemented responsibly, compliantly, and in a way that strengthens Jewish education throughout Greater Washington.
A Coordinated Effort to Strengthen Jewish Education
The Federal Tax Credit Scholarship Program allows eligible taxpayers to contribute to approved Scholarship Granting Organizations (SGOs) and receive a federal income tax credit.
In practice:
- A taxpayer makes a contribution (up to $1,700 annually, under current guidance) to an approved SGO.
- The taxpayer claims a credit on their federal income tax return for the amount contributed.
- The tax credit directly reduces the amount of federal income tax owed.
- The SGO distributes those funds as scholarships to eligible students at participating schools.
Scholarship dollars may be used to reduce tuition costs and may also support other qualified education-related expenses consistent with federal guidelines.
Participation is voluntary. The program operates through the federal tax code and does not alter state or local public school funding mechanisms.
Eligible public, charter, and non-public schools may participate. The opportunity is not limited to families currently navigating K–12 education; it also enables the broader community to support Jewish day school access, recognizing that strong Jewish day schools benefit the entire Jewish ecosystem.
The Jewish Federation of Greater Washington is spearheading the regional effort to:
- Establish Scholarship Granting Organizations serving Greater Washington
- Develop shared governance structures
- Ensure compliance with federal regulations
- Coordinate communication across participating Jewish day schools
- Provide clear, accurate information to families and community members
This coordinated approach allows schools to focus on students and families while ensuring responsible implementation across the region.
It is a new federal income tax credit opportunity available to states that opt in. It allows eligible taxpayers to contribute to approved Scholarship Granting Organizations (SGOs) and receive a federal income tax credit.
Under this program, a taxpayer can direct a portion of their tax dollars to a Scholarship Granting Organization of their choice. When they contribute to an SGO, they can reduce their federal tax bill by 100% of the amount they contributed—up to $1,700 per taxpayer. The SGOs use the money to give scholarships to eligible students.
The Jewish Federation of Greater Washington, in coordination with regional Jewish day schools, is working to operationalize the SGOs that have been established to support Jewish day schools across the region.
Any student who meets all three of the following requirements:
- Their family income is under 300% of the median income for their region
- They are enrolled in grades K-12 in either a public or nonpublic school
- They live in a state that has opted into the federal program
Within our region, as of April 16, 2026, only Virginia has opted into the federal program while Washington, D.C. and Maryland have not yet made a decision. Federation, the partnering Day Schools, and the Jewish Community Relations Council of Greater Washington are engaging with policymakers as states consider participation.
These scholarship dollars can be used to reduce the burden of tuition and can also be used for other education-related expenses qualified under the Coverdell Education Savings Account program, including:
- Books, supplies, and equipment
- Academic tutoring
- Special needs services
- Room and board
- Uniforms
- Transportation
- Extended day programs
- Computer equipment and Internet
Because this is a federal program, eligible public schools and charter school students may also use scholarship funds for qualified education expenses.
We believe that in order for this program to be sustainable, broad participation across eligible schools—including public and charter institutions—is important.
The law takes effect in January 2027. Taxpayers can begin contributing to SGOs in January 2027. Depending on participation levels, the first scholarships may be distributed for the 2027–2028 school year.
The Federal government has placed no funding cap on this program. Each taxpayer can receive a tax credit of up to $1,700 per year.
No. Vouchers are government-funded—families receive public dollars to help pay tuition.
This Federal tax credit program is different: donors contribute to SGOs, students receive scholarships, and taxpayers receive a federal tax credit. In short, vouchers rely on government funding, while this federal tax credit program relies on community participation.
Anyone can contribute to an SGO. However, not everyone may be eligible for the federal tax credit. Participation depends on individual financial circumstances, and individuals are encouraged to consult a tax professional to determine whether this opportunity makes sense for them.
You do not need to be a parent of a child in a participating school to contribute.
For each dollar you contribute to an SGO, you can deduct one dollar from your federal tax bill, up to $1,700 per year.
A tax credit directly reduces your tax bill. For example, if your federal tax bill is $10,000 and you make a $1,700 contribution to an eligible SGO, your final tax bill would be $8,300.
If your tax bill is lower than $1,700, any unused portion of the credit can be carried forward for up to four years.
You cannot benefit from this tax credit if you pay no federal taxes.
When you file your taxes for the calendar year in which you made the contribution, you may claim the credit.
We need to wait for program regulations from the IRS to be certain. The bill suggests that a married couple filing jointly may only receive a tax credit up to $1,700, as they are considered a single “taxpayer” when filing jointly. It is possible that IRS regulations could clarify this further.
It is currently assumed that contributions may be designated to a specific participating school. IRS regulations will clarify how SGOs may process contributions with these types of restrictions.
However, the law expressly forbids earmarking a contribution for a specific student.
Yes. There are no restrictions against contributing across state lines, although contributions may only be made to SGOs located in states that opt into the program.
You may also contribute to multiple SGOs. For example, you may claim a tax credit of $1,700 if you contribute $850 to one SGO and $850 to another SGO.
No. Contributions must be made in cash from personal funds.
Because a tax benefit was already claimed when contributing to a Donor Advised Fund, a contribution from a DAF would not generate a federal tax credit.
If you receive a tax credit for contributing to an SGO, you cannot also claim a state or federal tax benefit on the same contribution.
You may contribute more than $1,700; you will receive a tax credit for the first $1,700 and a tax deduction for the remainder.
An SGO is an independent, nonprofit organization that is recognized as eligible under the Federal Tax Credit Scholarship Program. SGOs may be newly formed or pre-existing organizations that meet federal requirements. We are awaiting further federal guidance to understand how much discretion states will have in determining SGO eligibility.