Expanding Access to Catholic Education for Years to Come

New federal scholarship tax credit creates new opportunities for families beginning in 2027 

Denver Archbishop James Golka visits St. Vincent de Paul Catholic School in Denver, his first pastoral visit after being named Archbishop of Denver. (Photo by Grant Whitty)

For many families, the desire to give their children a Catholic education runs into a very practical obstacle: cost. 

A new federal scholarship tax credit, taking effect in January 2027, could help change that by creating a significant new source of scholarship funding for students, including those who want to attend Catholic schools. 

This presents a tremendous opportunity to support parents in their God-given responsibility as the primary educators of their children and to help make a Catholic education possible for more families. 

And here in Colorado, we are already positioned to participate. 

The new federal program allows taxpayers to receive a dollar-for-dollar federal tax credit for qualified donations of up to $1,700 ($3,400 for married couples, filing jointly) to an approved scholarship-granting organization, or SGO. Those organizations, in turn, use the donations to provide scholarships for students. 

Put simply, an eligible individual taxpayer with at least $1,700 in federal income tax liability could donate $1,700 to a qualified SGO and receive $1,700 off their federal tax bill. And, that limit increases to $3,400 for a married couple filing jointly.  

For families, the potential impact is significant. 

Thousands of students currently attend Catholic schools in the Archdiocese of Denver, with many families receiving some form of tuition assistance. More scholarship funding could help those families sustain a Catholic education while opening the doors to families who might otherwise never consider it financially possible. 

Turning Generosity into Opportunity 

Scholarship-granting organizations will serve as the bridge between taxpayers who make qualified contributions and the students who ultimately benefit from them. 

ACE Scholarships, a Denver-based national scholarship-granting organization, is already preparing for the new federal program in order to continue serving lower-income families seeking greater educational opportunities for their children. For more than 25 years, ACE has provided more than 121,000 scholarships worth more than $395 million. 

Beginning in 2027, qualified contributions to approved SGOs such as Ace Scholarships could provide a new, long-term source of scholarship funding. For Colorado Catholics looking to participate, ACE Scholarships offers opportunities to turn individual generosity into educational opportunities for children. 

How It Works 

Congress created the Federal Scholarship Tax Credit Program in 2025, with the program beginning Jan. 1, 2027. 

Unlike a tax deduction, which reduces the amount of income subject to taxation, this is a dollar-for-dollar, nonrefundable federal tax credit. The amount of credit an individual can receive depends on his or her federal tax liability, up to the $1,700 annual limit per taxpayer. 

The scholarships are funded through private charitable contributions rather than direct government funding. Scholarship-granting organizations receive those contributions and award scholarships to eligible K-12 students for qualified educational expenses. 

While the program could significantly expand assistance for families seeking a Catholic education, its benefits are not limited to students attending private schools. Eligible public-school students can also receive scholarships for qualified expenses such as tutoring, after-school programs and educational materials. 

That broader reach appears to resonate with Americans. In a July 2026 Morning Consult poll commissioned by the Invest in Education Coalition, 63% of registered voters said they became more supportive of the program after learning that public-school students could also benefit. 

States must choose to participate in the program, and SGOs must be approved by their state before contributions qualify for the federal credit. Colorado Gov. Jared Polis has already opted our state in, ensuring that Colorado families can benefit when the program begins. 

An Opportunity to Serve Families 

Although the credit does not begin until 2027, we can begin preparing now. 

That starts by learning how the program works and sharing this opportunity with others. Our parishes, Catholic schools, families, employers and Catholic organizations can help ensure that those who may be able to participate know the opportunity exists. 

The Archdiocese of Denver recently added informational pages to our website and donors can begin to schedule their contributions now, for the funds to be drawn in 2027. 

 The potential is significant. Thousands of individual taxpayers making qualified contributions could collectively generate millions of dollars in new scholarship funding for children in public and private schools. 

But ultimately, this opportunity is about more than dollars and tax credits. It is about children and families. It is about supporting parents as they seek what is best for their children. And for families who desire a Catholic education, it is about helping make possible an education in which children can grow not only academically, but also in faith and virtue. 

Catholic education has formed generations of young people to know and love Jesus Christ and to place their gifts at the service of others. This new program gives us another opportunity to support that mission. 

I encourage Catholics across Northern Colorado to learn about the new scholarship tax credit, prayerfully consider whether they can participate and share this opportunity with others. Together, our generosity can help open the doors of Catholic education to more families and help form young people who will carry the light of Christ into our communities for years to come.