Connecticut Republicans are asking Gov. Ned Lamont to adopt a federal tax credit that provides reimbursements for donations made to nonprofit scholarship-granting organizations (SGOs).
The federal tax credit, which was approved in the Big Beautiful Bill Act, would reimburse donations at a one-to-one rate up to $1,700 made to SGOs. But, in order for this tax credit to apply, state governors need to opt in.
“This represents an incredible, transformational opportunity to re-imagine education for low-income students across Connecticut,” a letter from the Senate Republican Offices to Lamont states. “It has the potential to improve student performance while incentivizing individuals or businesses to contribute to SGOs. It can empower parents to choose schools that best fit their children’s needs.”
For years, Connecticut legislators have pushed for similar tax credit legislation, mostly proposed by Republicans with some Democrats in support. In the 2025 session, SB122 was brought forward by Senator Ryan Fazio (R-Greenwich), and when it was not brought forward for a vote, he and Rob Sampson (R-Wolcott) forced a vote as an amendment, which failed.
One of the benefits of the tax credit that the Senate Republicans stated in their letter was that it “can boost school choice in Connecticut while supporting public education and lower-income students.”
However, some people see this tax credit as harmful.
“We have urged Governor Lamont to take a firm stand against any attempt to undermine Connecticut’s public schools—including the misguided federal policy that would allow individuals to receive tax credits for donations to private schools,” Connecticut Education Association (CEA) President Kate Dias said in a statement. “This scheme is nothing more than a backdoor voucher plan that diverts critical public dollars away from the schools that serve the vast majority of Connecticut’s students. These types of policies are designed to erode public education and widen educational inequities by promoting a privatization agenda that benefits a select few at the expense of many.”
The CEA is the largest education union in the state.
Dias describes this program as “subsidizing private interests through tax breaks” in the statement.
“Connecticut must continue to invest in strengthening our public schools,” she said. “Our students, educators, and communities deserve nothing less.”
Defense of Freedom Institute Spokeswoman Angela Morabito does not think this tax credit would undermine public school systems.
“Our public schools are the furthest thing from underfunded,” she said. “We spend more per student per year than nearly any other country on Earth, and yet our results are pretty terrible. So there’s no underfunding happening right now, that’s for sure. Would it lead to underfunding? Of course not. This does not take a single dollar away from public schools. This is funded by taxpayers. It does not divert a penny from your local public school.”
A recent study from WalletHub found that Connecticut has the second-best public school systems in the country, and counted higher spending as favorable for that ranking.
Connecticut spends about $25,032 per student in K-12 schools, according to Education Data Initiative. This is the fourth-highest amount out of every state in the country. The vast majority of this money comes from state and local taxpayer dollars.
There are still some areas where the state is struggling with public education, including special educationa. There are many districts that have to send kids to other school systems to get help, because they cannot meet their educational needs.
In the 2023-2024 academic year, school districts across the state spent a combined $3 billion on special education programs, and $267 million of this money was spent on transporting students out of district alone.
According to Speaker of the House Matt Ritter (D-Hartford), the Hartford Public School District spends 30% of its budget on special education. In June, the Connecticut State Department of Education (CSDE) stated it has “significant concerns” about the Hartford Public School system. Among their concerns was the high number of students with special education needs being sent out-of-district.
“I think the biggest impact is going to be more freedom for more families (if this is adopted in Connecticut). You’re going to see fewer kids who are trapped in schools that do not meet their needs just because of the address where their parents live,” Morabito said of the tax credit. “We’re going to see better outcomes for students, because more of them will be getting out of failing schools, and more of them will be able to access a really meaningful, solid education.”
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