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Tuesday, October 14, 2025

Illinois lawmakers consider opting into new federal education tax credit program

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Michael J. Coffey Jr., Illinois State Representative for 95th District | www.facebook.com

Michael J. Coffey Jr., Illinois State Representative for 95th District | www.facebook.com

A new federal law could allow Illinois to expand educational opportunities for students, but the state must decide whether to participate. The One Big Beautiful Bill Act (OBBA), passed by Congress in 2025, includes a provision called Educational Choice for Children. This measure offers a federal tax credit of up to $1,700 for individuals who donate to state-approved Scholarship Granting Organizations (SGOs). These organizations can then use the funds for qualifying education expenses such as tuition, fees, tutoring, special needs services, books, transportation, and technology.

For Illinois residents to benefit from this program, the state must opt in each year by January 1 and submit a list of approved SGOs. If Illinois does not participate, donations from its taxpayers would be directed to SGOs in other states that have opted in.

Eligibility for these scholarships extends to students whose family income is up to 300% of the area median income. This would include many households across Illinois.

State Representative Mike Coffey has voiced strong support for school choice initiatives. “I fully support school choice that allows families to choose the best education for their children. It’s very important to our communities that we expand educational opportunities that create a brighter future for the next generation,” Coffey said.

Illinois previously had a similar program called Invest in Kids Act—a state-level tax-credit scholarship initiative—which expired in 2023 after serving tens of thousands of students at its peak. Its expiration left Illinois among only a few states without private-school choice or scholarship programs.

Neighboring states have expanded their own school choice options while Illinois has not acted on similar measures. A recent report noted that Illinois is now one of few states offering no private school choice scholarships after letting its previous program lapse.

House Minority Leader Tony McCombie has introduced HB 4099—the Education Choice for Children Act—in response. The bill would require the State Board of Education to opt into the federal tax credit provisions and publish an annual list of approved SGOs by January 1, 2027.

The findings supporting HB 4099 reference data from the 2024 National Assessment of Educational Progress (NAEP), which showed that 62% of Illinois fourth graders were below proficient in math and 70% were below proficient in reading; similarly large shares of eighth graders also lagged behind national benchmarks. Over 40,940 scholarships had been awarded under Invest in Kids before it ended according to the Illinois Department of Revenue.

Governor J.B. Pritzker has so far expressed skepticism about joining the federal program and recently described it as “a major setback for students across the nation.”

Supporters argue that both HB 4099 and federal law contain accountability measures and guardrails designed into their structure. However, critics warn about possible impacts on public school funding and question oversight mechanisms within such programs.

Coffey was elected as a Republican representative in 2023 to serve Illinois' 95th House District after Tim Butler's departure.

As lawmakers debate HB 4099 and advocates push for action from Governor Pritzker before other states move ahead with similar programs, questions remain about whether Illinois will take steps toward expanding educational options or let resources flow elsewhere.

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