How $1,700 Can Support Hundreds of Thousands of Children in Catholic Schools

The new Federal Scholarship Tax Credit program allows taxpayers to support Catholic education through donations to eligible Scholarship Granting Organizations. Starting January 1, 2027, individuals can donate $1,700 and deduct that exact amount from their federal taxes owed. Married couples filing jointly may donate $3,400 per household to receive the same dollar for dollar tax benefit.

The program is designed to provide funds for Catholic schools and help children access Catholic education. According to OSV News, more than 30 states have filed with the IRS or expressed interest in participating in the program as of the end of 2026. Not all states are participating in the credit.