Two governors, two neighboring states, four days apart.
On May 8, 2026, New York Gov. Kathy Hochul told a gathering of Jewish leaders that her state intended to join the federal Education Freedom Tax Credit (EFTC), a commitment later folded into her executive budget proposal for fiscal 2027 (citation needed). On May 12, New Jersey’s governor was asked the same question and gave a different kind of answer.
Not no. Not yet. Gov. Mikie Sherrill “will evaluate the program once the Trump Administration has finalized and published its rules,” deputy press secretary Maggie Garbarino told Jewish Insider.
There was no veto, no refusal and no deadline. For New Jersey families and donors, that blank space on the calendar is the entire story, because a state that has not joined does not have a program at all.
What New Jersey Has and Hasn’t Decided
As of publication, New Jersey has not joined the EFTC, and its governor has not said whether she will. The state’s stated position is that it will review the program after the U.S. Treasury Department publishes final regulations.
In the same statement, Sherrill’s office said her top priority is building New Jersey into the best public school system in the nation for all of the state’s children.
Sherrill, a Democrat, was sworn in on January 20, 2026, as New Jersey’s 57th governor. She inherited the decision rather than campaigned on it.
The practical effect is visible in a federal list. The IRS roster of states that have filed an advance election counted 27 as of mid-April 2026, and New Jersey was not among them.
How a State Joins, and Why It Can’t Happen by Accident
The EFTC was created by federal law in 2025 as Section 25F of the tax code. It does not switch on state by state on its own.
A state joins when its governor files an advance election with the IRS using Form 15714 and designates the nonprofits in that state that will award the scholarships. The formal term for those nonprofits is Scholarship Granting Organization, or SGO.
Once a state is in, the sequence for a donor runs in one direction. The donor makes a charitable contribution to a qualified SGO first, and then, at tax filing, an eligible taxpayer may claim a dollar-for-dollar federal tax credit of up to $1,700.
The scholarships flow to K-12 families with household income up to 300% of their area median gross income. The credit becomes available January 1, 2027.
We walk through the filing mechanics in more detail in how states opt in to the Education Freedom Tax Credit.
Why “Wait for the Rules” Is a Real Position, Not a Dodge
Treasury has begun previewing its Section 25F regulations, but final rules were not published as of this writing. That matters, because designating scholarship organizations comes with state-level responsibilities that the federal rules will help define.
Supporters of moving now argue the statute itself sets out the essential terms, that a governor’s election can be filed before every operational detail is settled, and that the calendar is short. States that filed early gave their scholarship organizations months to prepare.
Be the First to Know
Get notified when the Education Freedom Tax Credit launches so you don’t miss the opportunity to support K–12 students while benefiting from a federal tax credit.
Others, including officials in states that have not yet elected, have said they want to see final federal language before committing. Hochul’s office likewise said it wanted to review the federal details, and New York had not filed a formal election when her intention was reported.
So the difference between the two states in May 2026 was not paperwork. Both had filed nothing. The difference was stated direction.
For what Treasury has signaled so far, see our summary of Treasury’s Education Freedom Tax Credit guidance.
The Campaign Forming at Home
Meanwhile, a volunteer effort in New Jersey is asking the governor to declare an intent to join before the January 1, 2027 launch. It operates as OptInNJ.org and is run by the NJ Academic Access Coalition, a group of parents, educators and community members.
Organized pressure campaigns have preceded opt-in decisions in other states, though no coalition can file the election. Under the statute, that step belongs to the governor.
What This Means for New Jersey Families and Donors Right Now
For families, the answer is direct. Without a state election, New Jersey has no designated scholarship organizations, so New Jersey students cannot receive an EFTC scholarship, even though the federal credit exists.
For donors, the picture is less settled than either a yes or a no. The law creates a federal credit for contributions to qualified scholarship organizations, and questions about giving across state lines are among the details Treasury regulations are expected to address. We treat that as an open question rather than a settled one, and we lay out what is and isn’t known in can I donate to an SGO in another state?
What is knowable today is the timing. Nothing is available to donate to and nothing is available to apply for until the program takes effect on January 1, 2027, and nothing takes effect in New Jersey at all unless the state files.
What to Watch Next
First, when Treasury publishes final Section 25F regulations, since that is the condition Sherrill’s office named. Second, whether New Jersey files an advance election with the IRS.
Until then, New Jersey belongs to a category that is easy to overlook on a national map: not opposed, not committed, simply undecided as the clock runs.
Where AFC Scholarship Fund Fits In
State participation determines which children a scholarship program can reach.
We are preparing to serve donors and families in participating states when the program takes effect on January 1, 2027, and we track state-by-state status as it changes.
If you want to understand where your state stands and what the next steps look like, start with our state participation map, or sign up for updates to find out more as Treasury’s rules and state decisions arrive.
No. As of publication, New Jersey has not filed an advance election with the IRS, and the governor's office has said it will evaluate the program after Treasury publishes final rules. The state was not on the IRS roster of participating states as of mid-April 2026.
Not while the state remains outside the program. Scholarships are awarded by Scholarship Granting Organizations that a participating state has designated, so a state that has not filed an election has no designated organizations and no scholarships to award.
Under Section 25F, the governor files the advance election with the IRS and designates qualifying scholarship organizations. Some states have joined through legislation directing that filing, but the federal election itself is an executive filing.
No. Twenty-seven states had filed advance elections by mid-April 2026, before final regulations were published. Waiting is a choice some governors have made, not a federal requirement.
The credit becomes available January 1, 2027. The statute does not set a separate cutoff for a state to join, so a state may file later, but a late filing leaves scholarship organizations and families less time to prepare.
