Illinois House Republicans say Gov. J.B. Pritzker should opt the state into a new federal scholarship program known as the Education Freedom Tax Credit.
The program offers dollar-for-dollar federal tax credits for private charitable contributions to K-12 scholarship funds. Taxpayers in any state can claim the federal credit, but scholarship funds can only be distributed to students in states that officially opt into the program.
The Trump administration has released proposed Treasury regulations clarifying how the program will operate beginning in 2027, according to the House Republican Caucus.
So far, Pritzker has not opted Illinois in, while four of Illinois' neighbors have, the caucus said.
According to the caucus, if the governor opts Illinois in, donated money would flow to eligible Illinois students. If he does not, Illinois donors could still claim the federal tax credit by contributing to qualifying scholarship-granting organizations in participating states such as Indiana, but Illinois students could not receive any of the donated money.