Illinois public debate over the Federal Scholarship Tax Credit intensifies as Pritzker decision pends

With Illinois still undecided on the federal Scholarship Tax Credit (FSTC / ECCA / §25F), mid-May 2026 has brought a noticeable uptick in public pressure on Governor JB Pritzker from both sides. The credit was enacted as part of the One Big Beautiful Bill Act (P.L. 119-21, §70411) on July 4, 2025, and takes effect for donations made on or after January 1, 2027. A state must opt in — with the governor submitting a list of qualifying Scholarship Granting Organizations (SGOs) to the U.S. Treasury — for taxpayers to claim the credit against donations to SGOs in that state.

On May 18, 2026, NPR Illinois reported State Rep. Mike Coffey urging Pritzker to opt in, framing participation as “no cost to Illinois taxpayers” because the credit is federal. State Rep. Amy Grant has separately called for Illinois to join, arguing the program would “give Illinois families new tools to help their children succeed without additional costs to the state.”

On May 15, 2026, the Chicago Sun-Times ran an op-ed by Ralph Martire, Executive Director of the Center for Tax and Budget Accountability, urging Pritzker to decline. Martire argued that the program would cost the federal government an estimated $134 billion in foregone revenue over a decade, that §25F's 300%-of-Area-Median-Gross-Income eligibility ceiling reaches well into the upper-middle class (in his Chicago example, families earning up to roughly $359,700), and that prior studies of state tax-credit and voucher programs have raised concerns about academic outcomes and SGO admissions practices.

The basic facts of the program are not in dispute. Under §25F, individual federal taxpayers can claim a non-refundable credit of up to $1,700 per return ($3,400 joint) for cash contributions to qualifying SGOs in opted-in states; the credit follows the SGO's state of operation, not the donor's residence. Scholarships under §25F can fund tuition, tutoring, educational therapies, testing fees, and other qualified K-12 expenses for students in households at or below 300% of the relevant Area Median Gross Income. What is contested in Illinois — as in other pending states — is whether participation is on balance good policy for the state's students and schools.

The opt-in decision is annual: a governor who declines in 2027 can still submit a qualifying SGO list in 2028 or any later year. Illinois is one of roughly 14 states that, as of mid-May 2026, have not publicly committed either way.