TRENTON, N.J. — New Jersey has less than three months to opt into a new federal education tax credit program that Republican lawmakers say could deliver as much as $911 million in scholarship support to Garden State students.
Assemblymembers Michael Inganamort (R-Morris), Dawn Fantasia (R-Sussex) and Gerry Scharfenberger (R-Monmouth) are pressing Gov. Mikie Sherrill to enroll New Jersey in the program before the January 1, 2027 deadline. They’re also sponsoring legislation that would take the decision out of the governor’s hands by requiring New Jersey to participate.
“The Democratic Governor of Colorado said it best: ‘You’d have to be crazy not to opt in,’” said Inganamort.
Thirty states led by governors of both parties have already announced plans to participate, according to the lawmakers, with neighboring New York among the latest.
Sherrill has thus far declined to commit, previously saying she wanted to review the federal regulations before making a decision. The U.S. Department of the Treasury and Internal Revenue Service published the rules last Thursday.
The stakes could be significant.
The federal program allows taxpayers to receive a tax credit of up to $1,700 for contributions to qualifying scholarship-granting organizations. New Jersey residents can claim the credit regardless of whether Trenton participates — but if New Jersey doesn’t opt in, their contributions could instead finance scholarships for students in participating states.
In other words, New Jerseyans could help bankroll school choice elsewhere while their own kids are shut out.
The program isn’t limited to traditional private-school scholarships, either. Eligible expenses could include private-school tuition, homeschooling materials, tutoring for public-school students, books, supplies and certain special education services.
Students generally must be eligible to enroll in K-12 education and come from households earning no more than 300% of their area’s median gross income.
Fantasia, a longtime educator and school administrator, argued that opting in should be a particularly easy call as districts continue wrestling with the consequences of New Jersey’s controversial school-funding formula.
“Educational opportunities shouldn’t be subject to partisan debate,” said Fantasia. “If our governor would do the right thing, this program could help offset lost state funding for qualifying students in districts that have experienced cuts over the years, increasing access to tutoring, books, school supplies, special education services and more.”
Scharfenberger, who also teaches at Monmouth University, said the program provides families with alternatives without imposing another burden on New Jersey taxpayers.
“The Education Freedom Tax Credit gives every student the chance to succeed no matter their zip code,” he said. “Parents want the best outcomes for their children, and this is a way to do it with charitable dollars instead of at the expense of the taxpayers.”
The three Republicans aren’t simply waiting for Sherrill.
Their bill, A4777, would require New Jersey to participate in the federal program. It is currently sitting before the Democrat-controlled Assembly Education Committee.
The calendar, meanwhile, is ticking.
New Jersey must opt in by January 1 and submit its list of approved scholarship-granting organizations to the U.S. Treasury Department by February 15.
If Sherrill ultimately says no, Republicans will have a ready-made question for the governor and legislative Democrats: Why should New Jersey taxpayers subsidize educational opportunities for children in New York and other states while denying the same opportunity to their own?
“New Jersey needs to show the nation that we put our students ahead of politics,” Inganamort added. “New Jersey students deserve to be in the front of the line for scholarships.”
