One Decision Could Open the Door to $40 Million in Scholarships for Delaware Students
Nancy Mercante Joins Rick Jensen on WDEL to Discuss the Federal Scholarship Tax Credit and What It Could Mean for Delaware Families
What if Delaware families could access additional funding for tutoring, after-school programs, transportation, and other educational needs without reducing existing state education funding?
That possibility was the focus of a recent conversation on The Rick Jensen Show on WDEL, featuring Nancy Mercante of Citizens for Delaware Schools and the Caesar Rodney Institute (CRI).
At the center of the discussion was a new federal program that could generate an estimated $40 million annually in privately funded scholarships for Delaware students.
But there's an important decision to be made: Delaware must choose whether to participate.
Helping Students Who Need Additional Support
Rick Jensen opened the conversation by discussing a challenge many Delaware families understand: students who struggled academically during COVID-19 and the difficulties of remote learning.
For some children, the effects of learning disruptions continue to create challenges in reading, mathematics, and other essential subjects.
Additional tutoring could make a meaningful difference. But for families already managing household expenses, paying for academic support isn't always possible.
The Federal Scholarship Tax Credit program could help address that challenge.
During the interview, Mercante explained that the program is designed to provide supplemental educational resources to students, including those attending public schools.
Rather than replacing classroom instruction, scholarships could help families access services that complement their children's education.
How Does the Federal Scholarship Tax Credit Work?
The program, established through federal legislation, allows eligible taxpayers to make voluntary contributions to approved Scholarship Granting Organizations (SGOs).
In exchange, qualifying donors may receive a dollar-for-dollar federal income tax credit of up to $1,700 annually.
These organizations then distribute scholarship funding to eligible students for qualifying educational expenses.
The distinction is important: The $1,700 tax credit goes to the donor, while the amount of an individual student's scholarship may vary based on available funding and educational needs.
Mercante described several potential uses for scholarship funding:
Tutoring and academic assistance
Tuition and other qualifying educational expenses
Transportation to eligible schools
After-school care and enrichment programs
STEM, robotics, and other supplemental learning opportunities
The goal is to give families additional options for meeting their children's individual educational needs.
Could Delaware Students Benefit From $40 Million Annually?
One of the most significant figures discussed during the interview was the potential amount of scholarship funding Delaware could receive.
Mercante explained that if approximately 15% of Delaware taxpayers participated by contributing $1,700 each, the program could generate nearly $40 million in scholarship funding.
That estimate illustrates the potential scale of the opportunity, although actual funding would depend on taxpayer participation, donations, and program implementation.
For Delaware families, additional scholarship funding could mean greater access to tutoring, educational enrichment, and specialized services.
For students who need extra academic support, those resources could help close learning gaps and strengthen educational outcomes.
Would the Program Take Money Away From Public Schools?
A major part of the WDEL conversation focused on concerns that the Federal Scholarship Tax Credit could divert resources from public education.
Mercante argued that the program should not be confused with a traditional school voucher program.
She emphasized that the scholarships would be supported by voluntary private contributions encouraged through federal tax credits, rather than transfers from Delaware's existing education appropriations.
According to Mercante, the program is intended to supplement the educational services students already receive.
She also challenged the assumption that participating would necessarily cause large numbers of families to leave public schools.
Many parents, she explained, are satisfied with their children's schools but need additional assistance with specific educational challenges.
A child struggling with mathematics, for example, may benefit from tutoring without needing to change schools.
The program's supporters believe that public school students could be among its greatest beneficiaries.
The interview also addressed concerns raised by teachers' unions and other education stakeholders. Jensen and Mercante criticized opposition to the program, arguing that the discussion should place greater emphasis on students' needs.
Those concerns remain part of the broader policy debate over how scholarship programs affect public education.
What Are Scholarship Granting Organizations?
Another important topic was the role of Scholarship Granting Organizations, commonly called SGOs.
These nonprofit organizations would receive qualifying donations and distribute scholarships to eligible students.
Mercante explained that SGOs must meet federal requirements governing their operations and the distribution of scholarship funds.
During the interview, she highlighted a requirement that at least 90% of contributions be directed toward scholarships, leaving no more than 10% for administrative expenses.
She also discussed the possibility of school districts working with established SGOs to create scholarship opportunities focused on specific needs.
For example, a district might explore a program dedicated to helping low- and middle-income students access additional tutoring.
By partnering with an established organization, a district could potentially offer targeted educational assistance without building an entirely new administrative system.
Why Does Governor Meyer's Decision Matter?
The Federal Scholarship Tax Credit was established through federal law, but state participation is an important part of implementing the program.
During the interview, Mercante explained that Delaware's governor must take action for the state to participate.
She noted that Governor Matt Meyer had not publicly committed to either participating or declining at the time of the conversation.
For supporters of the program, the concern is that continued uncertainty could delay preparations by scholarship organizations and families.
The program is scheduled to begin January 1, 2027, making advance planning important.
Mercante also discussed how other states and nonprofit organizations were preparing for implementation.
The central question for Delaware is whether the state will take the necessary steps to make these scholarship opportunities available to eligible students.
A Federal Program, Not a Temporary Executive Order
Jensen also asked whether the scholarship program could disappear with a change in presidential administration.
Mercante clarified that the Federal Scholarship Tax Credit was enacted by Congress rather than created solely through executive action.
Jensen referenced Section 25F of the Internal Revenue Code, which establishes the federal scholarship tax credit.
Because the program is part of federal law, eliminating or substantially changing its statutory provisions would require congressional action.
The conversation also touched on proposed federal legislation that could change the program, along with political disagreements surrounding its implementation.
Those issues underscore why the Federal Scholarship Tax Credit continues to generate discussion among policymakers, educators, and families.
Why CRI Wants Delawareans to Join the Conversation
Toward the end of the interview, Jensen encouraged listeners to contact Governor Meyer and express their views about Delaware's participation.
Mercante then highlighted the Caesar Rodney Institute's petition, created to give Delaware residents a convenient way to express support for the program.
The petition provides an opportunity for parents, grandparents, educators, and other residents to communicate their perspectives.
For CRI, the issue is about more than a federal tax credit. It is about whether Delaware families should have access to another potential source of educational assistance.
The organization believes that expanding access to privately funded scholarships could help students receive the additional support they need.
Listen to the Full WDEL Interview
Want to hear the discussion firsthand?
Listen to Rick Jensen's conversation with Nancy Mercante about the Federal Scholarship Tax Credit, the potential benefits for Delaware students, and the decision facing Governor Meyer.
Delaware Families Deserve to Be Heard
The Federal Scholarship Tax Credit presents Delaware with a decision that could affect educational opportunities for students across the state.
Supporters believe participation could help families access tutoring, transportation, enrichment programs, and other educational services through privately funded scholarships.
The estimated $40 million in potential annual funding is not guaranteed, but it represents an opportunity that CRI believes deserves serious consideration.
Should Delaware participate? What could additional educational resources mean for your family or community?
The Caesar Rodney Institute is encouraging Delaware residents who support participation to make their voices heard.
Sign the Petition: Help Bring Scholarship Opportunities to Delaware
Governor Meyer has a decision to make. Delaware families have a voice.
If you believe Delaware should participate in the Federal Scholarship Tax Credit program, add your name to the Caesar Rodney Institute's petition.
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