Top photo credit: Students from St. Gregory the Great School, Hamilton Square, prepare for a new academic year in this Monitor file photo by Mike Ehrmann.
By David Karas, Correspondent, and Staff Reports
State officials in New Jersey are being encouraged to opt into a new federal tax credit that provides financial support for students and their families – and could expand access to a Catholic school education.
The Education Freedom Tax Credit was enacted in 2025 within the federal budget reconciliation bill. The program allows for individuals to donate up to $1,700 per year to authorized “scholarship granting organizations,” in return receiving a dollar-for-dollar federal tax credit. Eligible students and families can then receive funds from those organizations to help cover the cost of school-related expenses.
“The Education Freedom Tax Credit represents a tremendous opportunity for New Jersey families and students,” said Bonnie Milecki, diocesan assistant superintendent for school development and operations and president of the New Jersey Council for American Private Education.
Each state is required to opt in by December 31 to allow their residents to participate, and the New Jersey Catholic Conference (NJCC) has launched its own effort to raise awareness of the credit.
The NJCC, the public policy arm of the bishops of New Jersey, has also established a special website – www.NJScholarshipCredit.org – that is designed to serve as a resource for parents, schools, potential donors and legislators. Members of the Catholic community and supporters of Catholic education are encouraged to visit the website to learn more about the credit, its benefits, how to offer support, and to sign up to receive updates as the process unfolds, especially when the NJCC issues its call to action in the coming weeks.
“The NJCC website is intended to help people understand the facts about the program and the positive impact it could have not only on Catholic schools, but on all students and families in New Jersey,” said Milecki, who noted that the scholarships that could come through this tax credit can benefit students at all types of schools. “Public school students, nonpublic school students, homeschool families, and a wide range of educational organizations could benefit if New Jersey chooses to opt in.”
Milecki noted that the tax credit is “a rare opportunity in public policy,” since it can extend benefits to New Jersey residents without resulting in any cost to the state, or its taxpayers.
“I represent New Jersey in national conversations about education policy, and I’ve watched other states prepare to seize this opportunity. They know that if New Jersey declines to participate, the tax credit dollars won’t go unclaimed, they’ll flow to states that said ‘yes’,” she explained. “We should be competing for those investments on behalf of New Jersey students, not surrendering them to other states.”
James King, NJCC executive director, noted that the website includes specific action steps for those seeking to support the state opting in, and details about how to take advantage of the program should it move forward.
King emphasized the importance of becoming familiar with the tax credit details, and to sign up for the NJCC Action Alerts at njcatholic.org/faith-in-action, so residents will understand the program and be ready to respond in a timely manner when advocacy is needed in the next several weeks.
“While advocating to our elected officials is necessary, it’s important for people to understand the specific benefits of this program,” King said.