Susana Mendoza: Put Illinois students above politics, and opt in to the federal scholarship program

By: Susana A. Mendoza
Chicago Tribune Opinion
February 18, 2026
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Illinois has a big decision to make this year. And it’s an easy one.

Either Illinois students will see hundreds of millions of dollars in new resources supporting education or they will watch from the sidelines as that money flows to Washington and other states.

The correct choice is clear. But Illinois is at risk of fumbling this opportunity. And hurting our school communities as a result.

Let me explain.

A new program called the Federal Tax Credit Scholarship, or FTCS, allows taxpayers to claim a federal income tax credit of up to $1,700 for donating to qualified scholarship-granting organizations.

Those organizations distribute scholarships that families can use for education expenses allowed under Coverdell education savings accounts. That’s a type of trust that can be used to pay for things such as tutoring, uniforms, transportation, tuition and services for someone with special needs. After-school tutoring, test prep, exam fees, summer programs and private school tuition for families who choose that option could also be covered.

Illinois must affirmatively opt in. If we decline, Illinois taxpayers may still participate in the program — but their federal tax credits would be tied to scholarship organizations in other states. In other words, Illinois residents will still take advantage of the tax credit, but only students outside Illinois will receive the benefit.

From a fiscal perspective, that outcome is difficult to justify.

Illinois already sends more to Washington, D.C., in federal taxes than we receive back. We are consistently classified as a “donor state” in federal balance-of-payments analyses.

Opting into this program would rightly help bring some of that money back home. And it’s not small potatoes. If 100,000 Illinoisans participate with the max donation of $1,700, the program would generate $170 million for education resources for Illinois students — every single year.

Some Democrats may hesitate because this policy emerged from a Republican-controlled Congress and was signed by President Donald Trump. That fear is understandable and justified. Many Illinoisans have been strong critics of the Trump administration, me included. But especially Illinoisans who strongly oppose the Trump administration must recognize that Illinois benefits from recapturing federal tax incentives. Opting out means our Illinois children lose.

Rather than funding Trump’s agenda in D.C. or sending more of our dollars to Republican-controlled states already taking advantage of Illinois taxpayers, I would much prefer that an Illinoisan be able to redirect $1,700 to support their own school community.

And we shouldn’t let the circus in Washington obscure the practical question facing Illinois today: Should federal tax incentives generated by Illinois taxpayers be directed toward Illinois students?

The answer is obviously yes.

That’s why Colorado Gov. Jared Polis, a Democrat and strong critic of the Trump administration, announced that his state would opt in to FTCS.

Other Democratic and Republican governors would be smart to follow his lead, because leveraging the largest amount of federal funds possible shouldn’t be a partisan issue. It’s just smart math. When federal policy creates an opportunity to bring additional resources into a state’s education ecosystem, leaders would be foolish to ignore it.

“It is clear as day,” Jorge Elorza, a former mayor of Providence, Rhode Island, and the CEO of Democrats for Education Reform, has been quoted saying. His organization urges Democratic governors to participate in the federal program: “It’s written into the statute that public school students can benefit.”

Here in Illinois, there are two ways to opt in. State Sen. Adriane Johnson, D-Waukegan, has already introduced a bill to opt in to FTCS. Our General Assembly could pass that bill into law. The second method is also straightforward: Gov. JB Pritzker could choose to opt in at any time.

Participation in the program does not change Illinois’ public school funding formula in any way. It does not reduce state funds for public schools. It simply allows voluntary private donations, incentivized through federal tax credits, to provide additional educational support within our state. There is no cost to states, but there is significant missed opportunity if we opt out.

And the timing couldn’t be better.

Parents across Illinois are looking for practical, affordable tools to help their children succeed. A student struggling in algebra could receive targeted tutoring. A family preparing a child for college entrance exams could cover ACT prep and testing fees. A child with reading delays could access specialized instructional materials. A student with unique learning needs could receive therapy or adaptive services.

These are direct supports that families often finance out of pocket. Unlocking more money to fund them is a no-brainer.

As an Illinois Democrat, I support expanding opportunity for working families — especially when it doesn’t require raising taxes.

As comptroller, I believe Illinois should not leave federal incentives unused when they can benefit our residents.

And as a public school parent, I’m all for maxing out the education dollars available to students across the state.

Illinois should opt in — and ensure that when our taxpayers generate federal credits, Illinois students receive the benefit.

Susana A. Mendoza is comptroller for the state of Illinois.

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