The Federal Scholarship Tax Credit (FSTC) is a new federal program that could provide additional educational funding opportunities for eligible students and families.
On October 1, 2026, the U.S. Treasury Department and the IRS released regulations outlining how the program will operate, with a planned launch date of January 1, 2027.
The program is designed to support scholarships for eligible students to help cover qualifying educational expenses. According to the proposed regulations, approximately 96% of children may meet the eligibility requirements.
Scholarship funds can be used to help cover a wide range of K-12 educational costs including:
- Tuition & Fees
- Tutoring and academic support
- After-school programming
- Certain special-needs services
- Educational technology
- Other eligible educational expenses
- The program could create additional educational opportunities for students attending public, private, and religious schools, depending on eligibility requirements and the final program rules.
How Can We Help Bring This Opportunity to Massachusetts?
Massachusetts has not yet decided whether to participate in the Federal Scholarship Tax Credit program. Governor Maura Healey previously indicated that she was waiting for the federal regulations before making a decision. Now that the regulations have been released, Massachusetts has an opportunity to consider participation ahead of the program’s planned January 1, 2027, launch.
We are asking for your help in writing to Governor Healey and urging her to opt Massachusetts into the Federal Scholarship Tax Credit program.
By sharing our voices, we can help communicate the importance of educational opportunities and the potential impact this program could have on children and families throughout the Commonwealth.
To make this process easier, you can use the following link for assistance with writing and sending a letter to Governor Healey:
https://actionnetwork.org/
We encourage families to share why access to additional educational resources matters to them and how support for tuition and fees, tutoring, after-school programs, special-needs services, technology, and other qualifying educational expenses could benefit students.
Every family’s experience is unique, and hearing directly from parents and caregivers can help inform the conversation about educational opportunities for Massachusetts children.
Thank you for considering taking a few minutes to make your voice heard and for supporting opportunities that help students learn, grow, and succeed.
We are grateful for our STOC community and for the continued partnership we share in supporting our children’s education.