Massachusetts has earned its reputation as a leader in education by prioritizing investment in our students and schools. The newly enacted Federal Scholarship Tax Credit program, set to take effect on Jan. 1 presents an opportunity to build on this foundation by injecting new resources into our educational ecosystem. However, this opportunity is not automatic; Gov. Maura Healey must officially opt-in to secure these funds and ensure the Commonwealth does not miss a vital window for educational advancement.
The mechanics of the program are simple but transformative. Any taxpayer can donate up to $1,700 to an approved nonprofit Scholarship Granting Organization and receive a dollar-for-dollar federal tax credit. Projections show this could generate an estimated $660 million annually, bringing up to $1 billion in tax-credit-eligible gifts to Massachusetts over its first three years. Crucially, this represents 100% new federal funding that will not increase state spending or diminish public school budgets.
While some have characterized the program as a private school voucher initiative, that perspective overlooks the substantial benefits available to public school students. Whereas families earning up to 300% of the area median income are eligible, roughly 90% of Massachusetts students qualify. Families can utilize these funds for vital supplemental services, including academic tutoring, special education therapies, after-school programs, and technology. Furthermore, this influx of capital would drastically expand the capacity of community pillars like the YMCA and Boys & Girls Clubs, where the demand for out-of-school care outstrips supply two to one.
Further, our local employers face a persistent need for a robust talent pipeline. These scholarships can directly fund career and technical education, apprenticeships, and dual-enrollment programs. If the state fails to act, our workforce and business community will miss out on a critical opportunity to train the next generation of skilled workers.
Refusing to participate would place Massachusetts at a competitive disadvantage within New England. While New Hampshire has already opted-in, if the Commonwealth declines to participate, our taxpayers’ dollars will simply be redirected to fund students in other states or absorbed back into the U.S. Treasury. Rejecting this federal support would mirror the costly policy mistakes of states that turned away the Affordable Care Act’s Medicaid expansion, leaving their own constituents underserved.
By opting in, Massachusetts stands to capture a significant economic and educational advantage, securing vital resources that would otherwise be left on the table. Choosing this path aligns the Commonwealth with fellow Democratic leaders, including the governors of Colorado and North Carolina who have already joined, and New York’s Gov. Kathy Hochul, who has announced her intent to do the same.
With 68% of Massachusetts voters supporting participation, the mandate is clear. Gov. Healey and state leaders should put students, families, and our future workforce first by fully embracing the Federal Scholarship Tax Credit.
Timothy Murray is president and CEO of the Worcester Regional Chamber of Commerce.
