OPINION: Worcester Chamber Urges State to Embrace Federal Program

The Worcester Regional Chamber of Commerce is calling on state leaders, including Governor Healey, to opt Massachusetts into the recently enacted Federal Scholarship Tax Credit program. This initiative, passed as part of the H.R.1: An act to provide for reconciliation pursuant to title II of H. Con. Res. 14., allows taxpayers to contribute up to $1,700 to a nonprofit scholarship-granting organization in exchange for a full tax credit. By participating, Massachusetts stands to bring back hundreds of millions of dollars to support our state’s educational institutions and crucial non-profit organizations.

The Chamber emphasizes the program’s significant potential to benefit Massachusetts school students and local nonprofits. Scholarship funds can be used to support essential supplemental services, including tutoring, technology, and out-of-school programs.

For organizations providing critical after-school care, this federal funding represents a transformative opportunity. Currently, the demand for out-of-school programs often outstrips supply by as much as two to one, leaving many programs unable to reach their full capacity. If Massachusetts opts in, well-organized urban nonprofits could coordinate these funds to expand access to out-of-school programs in an accountable and effective manner.

Additionally, the program’s income eligibility thresholds are highly inclusive; approximately 90 percent of Massachusetts families would qualify, enhancing educational opportunity and choice across the Commonwealth.

Nationally, this program is projected to fund billions of dollars in scholarships every year. If Massachusetts chooses not to participate, the state will be leaving significant federal money on the table. Worse, the federal tax dollars of Massachusetts residents would be redirected to fund tuition and educational programs for students in other states, rather than benefiting children right here at home.

With the program set to begin on January 1, 2027, the Chamber urges the Healey administration to keep an open mind as the final rules are crafted by the US Treasury. We must prioritize the needs of our students and non-profits by ensuring Massachusetts tax dollars stay in Massachusetts. The Worcester Regional Chamber of Commerce encourages local leaders, businesses, and non-profits to engage in this important opportunity.

ABOUT THE WORCESTER CHAMBER

The Worcester Regional Chamber of Commerce is the largest Chamber in New England representing over 2,100 members from all industries and of all sizes located in a service area of over 41 cities and towns and other communities in Central Mass. and beyond. The organization serves the region’s business community through public policy advocacy, educational and networking events, and economic development efforts. Worcester’s affiliates are Auburn, Blackstone Valley, Central Mass. South, Clinton Area, LABO, Wachusett Area, and Webster Dudley Oxford. For more info, visit: https://www.worcesterchamber.org.

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