Breaking Down the Federal Tax Credit Scholarship Program: A New Path to More Affordable Jewish Education

Nov 04, 2026

Teach Coalition CEO Sydney Altfield explains how the program could ease tuition costs and how communities can help bring it to their states

For many Jewish families, day school education is a non-negotiable priority, even as soaring tuition costs force difficult compromises. As the strain on household budgets grows, ensuring that every Jewish child has access to a Jewish education, regardless of their family’s ability to pay, has become an increasingly urgent communal priority.

One promising solution may lie in a new federal tax credit scholarship program. Teach Coalition, an Orthodox Union initiative that advocates for equitable government funding, security resources, and scholarship opportunities for Jewish day schools and yeshivas, is working to make the program accessible to families across the country.

Teach Coalition CEO Sydney Altfield explains the program’s potential to make Jewish education more affordable and how community members can help bring it to their states.

How does the federal tax credit scholarship program work, and who stands to benefit?

Teach Coalition and other organizations recently established the Opportunity Fund for Jewish Education, a national scholarship-granting organization (SGO) that will collect contributions and distribute scholarships to Jewish day school and yeshiva students.

Starting January 1, 2027, taxpayers can contribute up to $1,700, or $3,400 for joint filers, to an SGO and receive a dollar-for-dollar federal tax credit up to that amount. For example, if I give $1,700 to an SGO and owe the federal government $2,000 in taxes, that credit reduces my tax bill to $300. So I’m basically taking money I would have already paid to the federal government and redirecting it to fund scholarships for Jewish education.

The amount we’ll be able to give each child depends on how much money we raise. That’s why we’re encouraging taxpayers across the Jewish community to participate. The more people contribute, the greater the impact we can have on families struggling to afford Jewish education.

How does this program differ from existing scholarship and tuition assistance programs?

There are currently state-level scholarship programs, including tax credit programs in Pennsylvania, Florida, and Nevada. The new program is federal, and every state can participate, provided its governor opts in annually. For the program’s first year, the deadline to opt in is January 1, 2027. 

What could this program mean for families today and for the future of Jewish education?

For Jewish families in states without existing scholarship programs, this could provide access to financial assistance that was previously unavailable. My hope is that it will open doors for children whose families have been unable to consider Jewish day school because of the cost, finally putting a Jewish education within their reach.

But the program’s long-term success will depend on community participation. There will inevitably be a learning curve as people become accustomed to contributing $1,700 annually and claiming the tax credit. Building that culture of giving may take several years, but the potential impact extends far beyond individual scholarships.

With sustained community support, we could begin planning more ambitiously for the future of Jewish education, from building new day schools and expanding enrollment capacity to hiring additional teachers.

Where is Teach Coalition focusing its state advocacy efforts?

Teach Coalition successfully advocated for Florida and Nevada to opt into the program, and both states committed early on. More recently, Governor Hochul announced New York’s participation following a major coalition effort led by Teach NYS. As of this interview, 30 states have formally opted in. (For an up-to-date list of participating states, visit Teach Coalition’s live tracker at teachcoalition.org/federalscholarships.)

Our focus now is on New Jersey, Pennsylvania, Maryland, and California, the four states where Teach Coalition operates that have yet to opt in. We’re working to encourage governors in these states to participate.

At the same time, we’re preparing to help schools navigate the new federal program and make the most of available scholarship opportunities, just as we currently help them access funding through state-level programs.

What practical steps can parents, grandparents, and other community members take to make their voices heard?

Visit teachcoalition.org/fstcactioncenter, where you’ll find action alerts for the four states I mentioned. You can send a letter to your governor and encourage friends and family in those states to do the same. And if you’re already excited to pledge your $1,700, you can do so today at jewishopportunity.org.

As CEO of Teach Coalition, Sydney Altfield leads federal and multi-state advocacy efforts to expand access to safe, high-quality, and affordable Jewish education through increased government support for security, scholarships, STEM education, transportation, meals, and other essential services. Sydney has built broad coalitions uniting Jewish, Catholic, Islamic, and other faith-based school communities; forged bipartisan partnerships with policymakers at every level of government; and helped secure historic investments in school security, expand support for nonpublic school students, and advance educational choice initiatives nationwide. She has been recognized on numerous City & State New York and City & State Pennsylvania Power Lists for her leadership and impact.