WASHINGTON, DC -- Congressman Chaka Fattah (D-PA), architect of the nation’s most successful college access program for low income students, now wants to ensure that students will have the financial resources needed to pursue their dream of a college education by dramatically increasing the assets available to community-based scholarship trusts.

Today, Congressman Fattah introduced H.R. 6352 the ‘Communities Committed to College Tax Credit Act.’  The legislation provides a 50% tax credit to qualifying scholarship trusts which are recognized and registered with the Secretary of the Treasury – and to their donors. 

To be eligible for the tax credit for itself and its donors, a trust must be classified as a 501(c) (3) nonprofit corporation. It must also be organized into an irrevocable trust that works in partnership with a local school district.  Trust donors – including individuals, foundations, other nonprofits and profit-making corporations as well -- will receive a 50% tax credit in addition to their regular deduction, a healthy return for a worthy investment. Income from these trusts may be used only to provide college scholarships to students who have demonstrated financial need.  

Congressman Fattah said, “In communities across the country individuals are joining forces to form organizations such as the CORE Philly Scholarship Trust and the Kalamazoo Promise to provide their local students with financial aid for college. These programs and more like them are also developing college going cultures that nurture students whose college days are still years away.”

He added, “This new trust fund legislation will encourage communities all across the nation to follow these successful models and set up their own trusts for our most underserved and deserving young people. We are providing a pathway and an incentive for pumping local capital directly toward the education of local students.” 

The proposed legislation follows Congressman Fattah’s philosophy of leveling the playing field for educational opportunity and increasing the life chances among all students. He is the architect of GEAR UP – Gaining Early Awareness and Readiness for Undergraduate Programs.  Since its enactment GEAR UP has provided $ 2.5 billion dollars to some 2 million students.  The program increases the number of low-income students who are prepared to enter and succeed in postsecondary education.

Fattah said he foresees that the trust fund tax credit legislation will ignite private investment in scholarship funding trusts. “Millions will be donated to the trusts over the years,” said Fattah. “While the principle will remain untouched, the earnings will transform neighborhood kids into trusts fund kids putting them on track for a lifetime of success.”

In turn, the trusts will provide enhanced educational opportunities for America’s future generations, especially those young people from low income families who may not see a path to realize their college dreams. The scholarship funding trusts established in conjunction with this legislation, he said, “will outlast individual champions or Congressional action by offering a win-win proposition in every community.”