The Illinois Policy Institute announced in a report that State Sen. Graciela Guzman (D-Chicago) filed Senate Bill 3966 to block Illinois from participating in the Federal Scholarship Tax Credit program shortly after receiving more than $72,000 in campaign contributions from the Chicago Teachers Union’s (CTU) political action committee.
The issue is significant as it concerns access to donor-funded scholarships for K-12 students and the influence of political contributions on education policy decisions. The Federal Scholarship Tax Credit program allows private donors to fund scholarships for eligible students, with donors receiving a federal tax credit.
Mailee Smith of the Illinois Policy Institute detailed that the Chicago Teachers Union donated $72,500 to Sen. Graciela Guzman’s campaign on February 2 and February 6, 2026. Smith reported that Guzman has received over $519,000 from teachers unions since October 2023… The institute said that Guzman filed Senate Bill 3966 on February 6 to prohibit state adoption of the Federal Scholarship Tax Credit program, which allows donor-funded scholarships for eligible K-12 students… The article explains that the program uses no state or federal funds and requires states to opt in for students to benefit while donors receive the $1,700 federal tax credit regardless, according to the Illinois Policy Institute.
Illinois General Assembly records show that Senate Bill 3966, sponsored by Sen. Graciela Guzman, creates the Prohibition on Federal Voucher Program Participation Act. The bill prohibits the state from opting in to, participating in, implementing, administering, or cooperating with any federal voucher, education savings account, or similar program under the referenced federal legislation. It was filed on February 6, received first reading and referral to Assignments, with Sen. Rachel Ventura added as co-sponsor on February 11 according to official records.
EdChoice reported that 27 states have announced their intention to opt into the Federal Tax Credit for Scholarships as of February 2026. A national poll from Democrats for Education Reform found that 64% of voters support states opting into the program… The U.S. Department of Education noted that participation provides scholarships for tutoring, books, tuition and other qualified expenses using private donor funds with no cost to state budgets according to EdChoice.
The Illinois Policy Institute is a nonpartisan research and education organization dedicated to empowering individuals and limiting government overreach… It advocates for policies promoting economic growth, transparent government, lower taxes, worker rights, pension reform and expanded education options for families… The institute works to foster fiscal responsibility and government reform… It seeks to promote free-market principles and limited government… It concentrates its efforts within Illinois… It offers data-driven analysis on issues like state budgets and education… It functions as an independent nonprofit think tank focused on policy analysis… Its headquarters are located in Chicago according to its official website.
