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A Historic Opportunity for Education Freedom — And What It Could Mean for You

Updated: Jun 18

At Tomorrow’s Hope Foundation, we are steadfast in our mission to ensure that every child has

access to a high-quality, values-based Catholic education—regardless of their family's income. Thanks to your generosity, hundreds of children across Long Island are flourishing in Catholic schools. Now, a groundbreaking piece of federal legislation—the Educational Choice for Children Act—has the potential to dramatically expand this life-changing opportunity across the country and enhance the impact of your support like never before.


What’s at Stake

This proposed federal tax credit legislation represents the best chance we’ve ever had to bring education freedom to all 50 states by 2026. If enacted, it would allow individuals to receive a dollar-for-dollar tax credit on federal income taxes for donations to approved scholarship-granting organizations (SGOs), like Tomorrow’s Hope.


Let’s say your adjusted gross income is $250,000, and your federal tax liability is $35,000. Under the proposal, you could make a $25,000 gift to an approved SGO—10% of your AGI—and reduce your IRS bill to $10,000. Rather than paying that portion to the federal government, you could direct those funds to provide scholarships for children in need.


For our supporters, that means more lives changed. If you’re currently contributing $3,000 a year to sponsor one student through our STAR (Student Tuition Assistance Relationship) Program, this tax credit could allow you to support more than eight students instead—without spending a dollar more out of pocket.


How the Tax Credit Would Work

The version of the bill passed by the House calls for up to $5 billion in tax credits each year from 2026 through 2029, with an escalator clause that could increase that amount based on donor demand. Another version introduced in the Senate includes a $10 billion annual cap and allows for both individuals and corporations to participate.


How would tax credits be distributed?

Each state would receive a designated allocation of the available tax credits to ensure all children—regardless of geography—can benefit. Once a state reaches its allocation, any remaining credits would be available through the U.S. Treasury Department on a first-come, first-served basis as donors apply. That means timing will be critical—early participation would be encouraged to ensure your gift qualifies for the credit.

Once the $5 billion cap is reached for the year, no further tax credits would be awarded until the following year.


Why It Matters

This legislation could dramatically increase the number of scholarships available nationwide, giving more parents the freedom to choose the best educational setting for their children. It would also allow committed supporters of Catholic education, like you, to supercharge your philanthropy in a transformative way.


Tomorrow’s Hope is committed to staying closely involved and informed as this proposal advances through Congress. Though it still has a way to go before becoming law, we’ve never been this close to enacting federal legislation that could so profoundly expand educational opportunity for families in need.


This is a moment worth celebrating—and one filled with tremendous promise.

As always, thank you for being a champion of hope and possibility for the children we serve. We will keep you updated as developments unfold.

 

 

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