What is the Federal Scholarship Tax Credit (FSTC) program?

A scholarship tax credit encourages people and businesses to donate to nonprofit Scholarship Granting Organizations (SGOs), which use those donations to provide scholarships that help eligible families afford the school that best fits their child. Donors receive a dollar-for-dollar tax credit for their contribution. The new federal scholarship tax credit (FSTC) expands this approach nationwide — but each state's governor decides whether to opt in, making it a key issue in Wisconsin's 2026 race. For CFC, it represents a way to expand access and put high-quality school options within reach of more Milwaukee families, regardless of income.