Illinois Bids Adieu to the Scholarship Tax Credit Initiative

Families protest in favour of the Invest in Kids school choice scholarship program in front of Illinois House Speaker Emanuel "Chris" Welch'Photo byGreg Bishop

Illinois, known for its singular school choice initiative, the Invest in Kids scholarship tax credit program, faces a significant shift as it approaches its conclusion on December 31. The state's Democratic-controlled Illinois General Assembly opted against renewing the program during the fall veto session, signifying an end to this educational opportunity.

The termination of the Invest in Kids program garnered contrasting reactions. The Chicago Teachers Union hailed it as a landmark victory for public education, while the Catholic Conference of Illinois strongly criticized lawmakers for their decision, lamenting the loss of over 9,500 scholarships for the forthcoming academic year. Moreover, the hopes of 26,000 waitlisted students eagerly seeking scholarships for private education or high school-level trade schools through the program were dashed.

This initiative allowed private donors to sponsor scholarships for economically disadvantaged children, granting them the choice of attending private schools when public institutions weren't suitable. Contributors received a substantial Illinois income tax credit amounting to 75% of their donation. Since its inception in 2018, over 40,000 scholarships have been granted under this program.

Hera Varmah, an expert in tax scholarships from the American Federation for Children, expressed concerns about families considering relocating out of state in pursuit of better educational choices. The abrupt withdrawal of the opportunity to select their child's educational path might prompt dissatisfaction among families reliant on this option.

Critics of the Invest in Kids program alleged that it diverted funds from public education. However, during its tenure, funding for Illinois public schools rose by nearly $2 billion, despite a decline in total enrollment.

The initiative mandated students receiving scholarships to undergo the same standardized tests as their public school counterparts each year. Although the Illinois State Board of Education was obliged to publish these results, it has yet to fulfill this obligation. An analysis based on the 2022 and 2023 test outcomes is slated for release in 2024.

While there's funding in place to see students through the current academic year, the future of the program appears uncertain without the tax credit component. It's improbable that sufficient donations will materialize to sustain the program moving forward.

Varmah underscored the personal impact of school choice on her family, narrating how her and several siblings' educational journeys culminated in college degrees. She emphasized the transformative potential of education and stressed the importance of ensuring every family has access to such opportunities.