New National Fund Launched to Bring Federal Tuition Tax Credit Dollars to Yeshivos

Agudah & Torah Umesorah Endorse National Scholarship Fund to Maximize New Federal Tax Credit for Yeshivos

The Opportunity Fund for Jewish Education 

Agudath Israel of America and Torah Umesorah recently announced that they are jointly endorsing the Opportunity Fund for Jewish Education, a national Scholarship Granting Organization backed by the Orthodox Union and Teach Coalition, Jewish Federations of North America, and Prizmah.

The organizations said they spent months studying how the Orthodox Jewish community could maximize the benefit of the new tax credit, including extensive deliberations by the Moetzes Gedolei HaTorah and the Vaad Roshei Hayeshivos.

Their conclusion was that the community would be better served by working through a single national SGO with the scale and infrastructure to attract the maximum amount of funding.

The Opportunity Fund says donors will be able to designate participating yeshivos and schools to benefit from their contributions. It also says that 100% of every dollar designated to a school will go toward scholarships, with administrative and operating expenses funded separately.

The New York and New Jersey Problem

While the federal law is scheduled to begin January 1, 2027, participation is not automatic.

The IRS's most recent official list shows that 30 states have made advance elections to participate for 2027. New Jersey is not on the list. New York is also not on the official participating-state list.

New York Gov. Kathy Hochul, however, has indicated that she intends to opt New York into the program, saying her administration supports the potential benefits but is awaiting additional information from the federal government.

Official Agudah and TU announcement:

Dear Yeshiva Leaders and Members of Our Communities, 

The new Federal Scholarship Tax Credit represents an unprecedented opportunity to bring significant new resources to our yeshivos and to ease the tuition burden on families across the country. 

Over the past several months, Agudath Israel of America and Torah Umesorah have carefully studied how our community can best take advantage of this opportunity. 

These discussions included extensive deliberations by the Moetzes Gedolei HaTorah and the Vaad Roshei Hayeshivos, with one overriding question in mind: What approach will maximize the benefit of this tax credit for our yeshivos, our families, and the future of chinuch?

 The conclusion was that the strongest course is to work through a single Scholarship Granting Organization with the scale, reach, and infrastructure necessary to bring the greatest possible number of dollars to our mosdos. 

Accordingly, Agudath Israel of America and Torah Umesorah are proud to endorse the Opportunity Fund for Jewish Education, a new national Scholarship Granting Organization launched by the Orthodox Union and Teach Coalition, Jewish Federations of North America, and Prizmah.

 The Opportunity Fund for Jewish Education www.jewishopportunity.org 

The Opportunity Fund pairs national strength with local connection. Its reach can open participation across the country, while its structure allows communities, parents, alumni, and supporters to stand behind the schools and yeshivos they know and care about.

 What This Means for Our Families and Yeshivos 

Beginning January 1, 2027, eligible taxpayers can contribute to the Opportunity Fund for Jewish Education and receive a dollar-for-dollar federal tax credit of up to $1,700. In participating states, those contributions can fund scholarships at yeshivos, bringing meaningful tuition relief to families. 

Local dollars stay local. Contributors can designate their contributions to participating yeshivos and schools, and communities can mobilize their parents, alumni, and supporters to direct new resources to their mosdos.

 A unified platform strengthens that designation: it broadens awareness, reaches contributors our institutions could not reach on their own, and ensures that yeshivos in communities of every size can benefit. 

Importantly, 100% of every dollar designated to a school will go directly toward scholarships for its students, with none used to cover the Fund’s administrative or operating costs. The Fund’s scale and partnerships uniquely position it to raise separate philanthropic support for those costs. We believe that, b’ezras Hashem, this effort can bring meaningful new resources to our mosdos and real tuition relief to families throughout the country.

 The Path Forward For taxpayers

 You can pledge your $1,700 contribution today and be ready to contribute when the program begins in 2027. Pledge Today

 For yeshiva and school leaders Schools can register with the Opportunity Fund now to receive additional information and learn about the next steps for participation. 

Register Your School 

In the coming months, Agudath Israel and Torah Umesorah will continue working closely with our yeshivos to help them prepare to take full advantage of this historic opportunity. With continued hatzlacha in your avodas hakodesh, 

Ksiva V’Chasima Tova 

Agudath Israel of America, Torah Umesorah