Pinellas County Schools Superintendent Kevin Hendrick wants the district to participate in a new federal tax credit scholarship program, arguing that public school students could miss out on funding opportunities if the district sits out.

At a Tuesday, Oct. 20, workshop, Hendrick estimated that about 90% of school-age children in Pinellas County would meet the program's income requirements, according to the Tampa Bay Times. That aligns with a U.S. Treasury Department estimate that roughly 95% of students nationwide would qualify based on income, WUSF reported.

How the federal scholarship program works

The program, established under President Donald Trump's "One Big Beautiful Bill," allows taxpayers to claim a nonrefundable, dollar-for-dollar federal income tax credit of up to $1,700 annually for donations to qualifying scholarship-granting organizations, or SGOs. Those organizations distribute the contributions as scholarships for eligible K-12 education expenses.

The tax credit takes effect Jan. 1, 2027, with scholarship funding expected to become available in July 2027.

Public school students can benefit from scholarships for qualifying expenses, including certain tutoring, after-school programs and enrichment activities. Public schools cannot charge scholarship recipients for services they already provide free of charge.

Hendrick acknowledged that partnering with Step Up for Students, Florida's largest scholarship organization, goes against his instincts. Step Up administers Florida's state voucher programs, which compete with public schools for students and funding.

However, Hendrick said Step Up has the infrastructure to manage the federal program and has partnered with the Florida Chamber of Commerce on plans designed to serve public school students.

If the district doesn't participate, Hendrick warned, private school children would benefit "and we're left sitting on the sidelines."

Board members raised questions about whether other scholarship-granting organizations were available, citing Step Up's past difficulties serving state voucher recipients. They also sought clarification about eligible services and how the district would administer the funding.

Hendrick said he would return with as many answers as possible in December.

Pasco approves three-year agreement

Neighboring Pasco County moved faster. Its school board unanimously approved a three-year agreement with Step Forward, Step Up's federal scholarship initiative, on Oct. 20.

Pasco Superintendent John Legg said the agreement would allow the district to begin promoting contributions and developing its program.

The district's preliminary plan focuses on five schools in low-income communities, where scholarships could support after-school care, tutoring and academic enrichment programs such as robotics and music.

"I think this is a statewide transformational program," Legg told board members in late September when he introduced the proposal, according to the Tampa Bay Times.

Other Florida districts consider participation

The debate extends beyond Pinellas and Pasco counties. School districts in Miami-Dade, Orange, Indian River and Santa Rosa counties are also exploring agreements with Step Forward, a Step Up executive told the Tampa Bay Times.

Nationally, public education advocates remain divided over whether the federal scholarship program will provide meaningful new resources for public school students or primarily benefit private school families.

The Treasury Department estimates the program could generate nearly $26 billion in scholarship donations by 2030. For comparison, Title I, a major source of federal funding for schools serving low-income students, received more than $18 billion in 2023.

For Pinellas County, the immediate question is whether participation would create new opportunities for public school students without undermining the district's existing programs.

Hendrick said he would return to the Pinellas County School Board with more information in December, ahead of the federal tax credit program's Jan. 1, 2027, start date.