As the largest donor and longstanding partner to the Paterson Diocesan schools, Tri-County Scholarship Fund (TCSF) is prepared to help implement the Federal Scholarship Tax Credit if the NJ Governor opts in our state. With 45 years of experience in awarding scholarships to children and schools in the Paterson Diocese, Tri-County offers an additional explanation and perspective on this historic opportunity.
What is the Federal Scholarship Tax Credit?
Passed into law last summer and scheduled to take effect in January of 2027, the Federal Scholarship Tax Credit allows every tax filer in the country to annually take up to $1,700 (amount based upon their income) right off the top of what they owe the IRS and instead direct it to the scholarship-granting organization (SGO) of their choice. The SGOs will award these dollars as scholarships to both students attending independent and Catholic schools, and for ALL children in the state to receive a range of enrichment services: from tutoring, special ed, and SAT prep to music and language lessons, field trips, band and sports uniforms, and more.
The federal scholarship tax credit represents a remarkable opportunity to help New Jersey children who would not otherwise be able to afford these education options and enrichment. It will direct MILLIONS of tax credit dollars to education every year going forward. And it will cost New Jersey taxpayers and the state NOTHING.
The only hitch is that each governor must “opt in” their state to confirm that the state’s SGOs may accept, process, and award the federal scholarship tax credit donations in order for the money to remain in their state. If New Jersey’s governor does NOT opt in, the New Jersey taxpayers can still make their free $1,700 tax credit donations — but only to SGOs outside the state of New Jersey. The money will leave the state — sending millions of education dollars to children in OTHER states where the governors HAVE opted in to help their children.
What does this mean for the taxpayers, schools and children in our diocese?
- If Gov. Mikie Sherrill opts in New Jersey, EVERYONE wins: the children, the schools, the taxpayers, and the state
- It means the students and schools in our diocese will flourish; more children will be able to afford to attend these safe, quality, values-based schools that reinforce the values the parents want for their children
- For public school children: it means even the most financially disadvantaged children will be able to afford the educational tutoring and enrichment activities and materials that will give them a fair start in life.
- The schools will all benefit; both public and independent schools, as all of the children will be better prepared and be able to afford access to more resources — at no expense to individual towns or school boards.
- The taxpayers of New Jersey win because our state will have a better educated population and a more equitable education system, creating better results for students and greater opportunities for their futures.
The values of education, of providing opportunity for all children regardless of their zip code, and the Catholic tradition of faith-based education — these have been important to the people of the Paterson Diocese for generations. Thanks to the devoted supporters of Catholic schools and scholarships, we have been able to help many New Jersey students achieve a quality, Catholic education. But we still have so many MORE children on our scholarship waiting list. Waiting for tuition help. Waiting for their chance. Now they will have that chance through the dollars generated with the Federal Scholarship Tax Credit.
What can each of us do to help make the Federal Scholarship Tax Credit a reality for New Jersey?
We ask you to consider the following valuable steps:
- Stay informed and ready to make your own free federal tax credit donation beginning in 2027 – if the governor opts in
- Help the Governor understand that voters want her to opt in by writing her at: Office of the Governor, P.O. Box 001, Trenton, NJ 08625 or calling her office at 609-292-6000
- Click on the TCSF website for more information and so that we may keep you informed regarding updates.
How has Tri-County Scholarship Fund prepared to help donors implement their federal tax credit donations?
TCSF has 45 years of expertise in awarding over 40,000 scholarships to students in the Paterson Diocese. While consistently earning the highest 4-star Charity Navigator Rating for operating efficiency, TCSF has grown the number of scholarship awards each year — up to 1,025 students for the upcoming 2026-’27 school year.
Specifically with regard to preparing for the Federal Scholarship Tax Credit, over the past two years, TCSF has:
- Participated in meetings with policy makers to work out the detailed mechanics of the federal scholarship tax credit
- Written the governor to ask her to opt-in New Jersey
- Provided briefing sessions for all of our partner schools
- Researched the processing infrastructure to effectively implement donor tax credit donations
- Created informational webpages including answers to taxpayers’ and parents’ Frequently Asked Questions
- Become a knowledgeable resource for anyone with questions regarding the federal scholarship tax credit
We ask you to go to the TCSF website and add your name to those who support this great, game-changing initiative. We are hopeful that the voices of concerned New Jersey voters will compel the governor to take advantage of this opportunity to benefit all of the children in New Jersey, and in so doing, help our Catholic schools to remain open and able to educate the next children who seek the valuable, life-changing opportunity of a Catholic education.
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