States

The Federal Scholarship Tax Credit in New Jersey

Last updated: October 2026. New Jersey has not opted in.

Where things stand

New Jersey has not opted in to the Federal Scholarship Tax Credit, and no decision has been announced. Governor Mikie Sherrill has been noncommittal. In May 2026 she said she would "evaluate" the program after Treasury finalized the federal rules. Those rules came out on October 1, 2026. Her spokesperson now says the office is "carefully reviewing this federal guidance" and "examining who the program would serve."

Two bills that would require New Jersey to participate are stalled in committee:

• A4777 (Assembly, introduced March 2026), in the Assembly Education Committee with no further action
• S4121 (Senate, introduced May 2026), in the Senate Education Committee with no further action

Both bills would mandate participation and name the Commissioner of Education as the state's liaison to Treasury. Neither has moved.

The politics

New Jersey has a Democratic governor and a Democratic legislature. Sherrill did not take a position on private school choice during the 2025 campaign. Her Republican opponent pledged to opt in and lost.

Senate Education Chair Vin Gopal, a Democrat, has vowed to block voucher legislation. The teachers' union joined more than 50 groups opposing a state voucher bill, though it has not issued a statement specifically on the federal program.

Nationally, the picture is mixed for Democrats. Colorado's governor is the only sitting Democratic governor to opt in. New York's governor said she would join barring "poison pills" in the federal rules but has not filed. A poll of nine Democratic-governor states including New Jersey found majority public support for opting in.

What New Jersey has now

New Jersey has no state voucher or tax-credit scholarship program. Past efforts never passed. What exists:

• Interdistrict Public School Choice Program. About 119 participating districts, roughly 5,000 students per year. Enrollment has been capped since 2012-13.
• Charter schools. Public schools operating under charters, admission by lottery.
• County vocational schools. Selective magnet programs run by counties.

The federal credit uses no state dollars, so it would layer on top of these options rather than replacing them. Federal scholarships can also cover tutoring, books, and technology for public school students.

Income limits if New Jersey joins

Students would qualify if household income is at or below 300% of the area median income. Based on HUD FY2026 data:

Estimates based on HUD FY2026 income data via NJ DCA. The IRS has not published official 2027 figures, and the income calculation method comes from proposed federal regulations, not final rules.

Organizations preparing in New Jersey

No official SGO list exists. If New Jersey opts in, its list would be due to the IRS by February 15, 2027. Two organizations are positioning themselves:

• Tri-County Scholarship Fund. Operating for 45 years in Morris, Passaic, and Sussex counties. Has awarded around 40,000 scholarships across 60+ schools. Running an opt-in campaign and says it is ready once the governor acts.
• South Jersey Scholarship Fund. A Camden-based nonprofit doing donor outreach in partnership with the Diocese of Camden.

These are preparations, not designations. No organization can be certified until New Jersey opts in.

Key dates

Back to all states