At Glance.

• $1,000,000 Annually if 75% of families donate to school’s SGO.
• +$5,200,000 if each family gets four friends or grandparents to donate.
• $3,350 avg. scholarship if 80% of students receive.

Background on the Federal Tax Credit Scholarship Program.

Under the new Federal Tax Credit Scholarship program, taxpayers can donate $1,700 per year to a Scholarship Granting Organization (SGO) and get an equal amount off their federal taxes.

SGOs use these donations to award scholarships to students who:

• Attend a K-12 school (public, charter, or nonpublic school).
• Have a family income under 300% of their local Area Median Income; and
• Live in a state that has opted in to the program.

Any K-12 student can receive a scholarship if they meet the requirements. Students with no tuition costs – such as those in public and charter schools – can still use scholarships for a range of education expenses, including: books, uniforms, tutoring, special needs services, bussing, computers, Internet, afterschool programs, and fees.

Crucially, states must opt into the program before their residents can receive scholarships.

What it Means for Students in Montgomery County Jewish Schools.

• Jewish schools in Montgomery County currently enroll ~2,300 students. If the average family has 3 kids in Jewish school, that’s 760 families who could donate to the program.
  • Source: Maryland State Department of Education, 2025-26 Nonpublic School Enrollment
• If even three-quarters of families donate the maximum $1,700 to a Federal Tax Credit Scholarship fund for the school, that would mean $1,000,000 per year for the parent body!
• Families can ask their grandparents, friends, and extended family in any state to donate to a scholarship fund for the school and receive the federal tax credit.
  • If each family gets four friends or grandparents to donate to the school’s scholarship fund, that would mean an extra $5,200,000 per year for students!
• We project that about 80% of Jewish families will be eligible for a scholarship (with a family income under 300% of Area Median Income, which is $498,300 in MoCo).
  • Source: FanniMae AMI Lookup Tool; American Federation of Children “Who Can Receive a Scholarship”; We conservatively estimate that if 91% of Maryland students overall qualify, then conservatively at least 80% of the Jewish community does likewise. 
• Thus, if the community maximizes donations from families, grandparents, and friends of families, then that could mean an average scholarship of $3,350 for four-fifths of students.