To the Baltimore Community:

We hope this finds you well having had an uplifting Yom Tov season.


As you know, the Trump Administration’s One Big Beautiful Bill (OBBB) Act that passed in July 2025 included the historic and exciting Federal Scholarship Tax Credit (FSTC) Program. To briefly refresh you, the FSTC program has two components to it. First, taxpayers can receive a dollar-for-dollar tax credit off their federal taxes for donations to scholarship-granting organizations (“SGOs”). Second, the SGOs use the money gathered through these donations to provide scholarships for K-12 school children. After the July 2025 passage of the OBBB Act, two items remained before this program could proceed: one, the development of the program’s rules and regulations by the IRS/Treasury Department; and two, the state-by-state “opting in” to the program by e ach state’s governor.

THE REGS HAVE BEEN RELEASED! At long last, during the recent Chol Hamoed Sukkos, the IRS/Treasury Department released the highly anticipated regulations for the program providing all the details as to how it will work when the program begins in January 2027. (One key takeaway from the regs: the $1,700 tax credit is for a single filer - but a married couple filing jointly will receive a $3,400 tax credit.)

SECURING MARYLAND’S OPT-IN – As of this writing, 31 governors/states have opted in to participate in the program (with New York becoming #31 this past Friday).

Maryland is one of the remaining states that has yet to decide if it will be opting in or not. Beginning immediately after the July 2025 signing of the OBBB Act, we and a broad group of similarly-focused colleagues have been heavily engaged in our communication with Governor Wes Moore and his top staff demonstrating why opting in is a “no-brainer” and would bring enormous benefit to all Maryland school children. These efforts have included working with public school officials to impress upon them the incredible benefits this program would offer them as well. As Gov. Moore previously told us that he was waiting to see the “regs” before making his decision, we are now hopeful that his decision to opt in will come shortly, and we are working on various fronts to help secure that outcome.

As part of these critical efforts, we implore each and every one of you to click here and take one moment to contact Gov. Moore’s office, and urge him to opt in to the program, so that we in Maryland can seize this historic opportunity for students and families.

Thank you and best regards,

Rabbi Ariel Sadwin