FOR IMMEDIATE RELEASE
January 6, 2025
Media Contact:
Jason Amos
media@nsba.org
National School Boards Association Urges Treasury and IRS to Preserve State Authority and Protect Public School Students in Implementation of New Federal Tax Credit
Alexandria, Va. — In formal comments submitted in late December on the implementation of a new federal tax credit under the One Big Beautiful Bill Act, the National School Boards Association (NSBA) urged the U.S. Department of the Treasury and the Internal Revenue Service to preserve state authority, protect public school students, and strengthen public education. The tax credit allows individuals to receive a federal credit for making qualified contributions to Scholarship Granting Organizations (SGOs).
“Make no mistake. NSBA, reflecting the views of its members nationwide, is fundamentally opposed to this program,” said Verjeana McCotter-Jacobs, NSBA Executive Director and CEO. “However, we feel compelled to participate in this process to mitigate harm and strengthen safeguards for public schools and the students they serve. To that end, our recommendations are focused on ensuring transparency, accountability, and equitable access — particularly for the approximately 90% of students who attend public schools.”
As the only national organization representing school boards, with members across the United States, the U.S. Virgin Islands, and Canada, NSBA has long opposed private school choice programs — including this new federal tax credit — that divert public resources to private institutions not held to the same standards as public schools. At the same time, NSBA emphasized the importance of ensuring school boards and state leaders have a meaningful role in shaping the program’s implementation.
In its comments, NSBA urged Treasury and IRS to:
- Affirm state discretion over Scholarship Granting Organizations, including a governor’s authority to establish state-specific requirements and determine which SGOs are eligible to participate.
- Recognize state authority to define “school,” ensuring alignment with state law and existing education systems.
- Allow broad state interpretation of eligible education expenses, including supplementary services, extended day, after-school, and summer programs, and expenses incurred in connection with enrollment or attendance.
- Clarify operational rules for SGOs, including confirming that the statutory requirement to spend at least 90% of income on scholarships applies only to income derived from qualified contributions.
- Preserve flexibility for SGOs to focus scholarships on specific student populations or educational needs, consistent with the statute.
NSBA noted that overly restrictive federal interpretations could limit access to educational opportunities — particularly for public school students — and undermine state innovation.
“Our objective is to ensure that, where this program is implemented, it does not come at the expense of public education,” said Devin Sheehan, NSBA President and a member of the Holyoke School Committee in Massachusetts. “School board members across the country are clear that education policies work best when they are shaped by those closest to students and schools, with a deep understanding of local contexts, student needs, and community priorities. Any implementation of this tax credit must respect that role and avoid undermining the public schools that serve the vast majority of America’s students.”
NSBA’s complete comments are available via this link.
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Founded in 1940, the National School Boards Association’s (NSBA) purpose is to ensure each student everywhere has access to excellent and equitable public education governed by high-performing school board leaders and supported by the community. With members spread across the United States, the Virgin Islands, and Canada, NSBA is the only national organization representing school boards. Along with its member state associations and member public school districts representing locally elected school board officials serving millions of public school students, NSBA believes that public education is a civil right necessary to the dignity and freedom of the American people and that each child, regardless of their ability, ethnicity, socioeconomic status, identity, or citizenship, deserves equitable access to an education that maximizes their individual potential. For more information, visit nsba.org.