Authored by Curt Merlau and Lindsay Bull
Part 2 of a 3-Part Series on Federal Scholarship Tax Credit (FSTC)
Career-connected learning has become a strategic priority for states and school districts seeking to improve workforce readiness, increase student engagement, and strengthen local talent pipelines. Yet many districts face a familiar challenge: sustaining funding for transportation, career advising, industry credentialing, work-based learning, and transition services that are essential to successful career pathways.
The Federal Scholarship Tax Credit (FSTC) may offer an opportunity to address some of those challenges. The program can support educational services that help students explore careers, earn credentials, and access postsecondary opportunities. For districts already investing in career-connected learning, FSTC may provide an additional pathway to expand access for eligible students.
Why FSTC Matters for Career-Connected Learning
District leaders across the country are being asked to deliver stronger educational outcomes while simultaneously preparing students for rapidly changing labor market demands. Career pathways require significantly more than classroom instruction. Successful models often depend on transportation systems, employer engagement, tutoring, advising, credential attainment, and transition supports.
Many of these support services align with categories already identified as potential opportunities within FSTC-funded educational services. As districts evaluate how to participate in FSTC, career-connected learning represents one of the strongest opportunities to align student needs, community workforce goals, and new funding mechanisms.
Without a deliberate access strategy, high-quality career pathways may remain out of reach for students who lack transportation, financial resources, or reliable support systems. Addressing those barriers begins with identifying the supports districts already provide and determining where FSTC may help extend their reach.
Align Existing Student Supports With FSTC Opportunities
Districts should focus less on creating entirely new programs and more on identifying the services already embedded within their career-connected learning ecosystems. Many high-performing CTE and workforce readiness programs depend on supports that can be difficult to sustain through traditional funding streams.
These services may include:
- Transportation to apprenticeship and internship sites
- Industry certification preparation
- Career coaching and advising
- Academic tutoring tied to workforce pathways
- Dual enrollment supports
- Transition planning for postsecondary education and employment
By reviewing these services against potential FSTC uses, districts can identify where scholarship-supported models may expand participation among eligible students without relying exclusively on general operating funds. This approach can help address two common challenges:
- Workforce Equity: Students without transportation, advising, or transition supports may be less likely to access pathway opportunities.
- Program Scalability: High-quality CTE programs often struggle to grow because supporting services are difficult to fund sustainably.
Next Steps You Can Take Today
District leaders can begin preparing now by taking four practical steps:
- Inventory existing career pathway services. Document the supports that enable students to participate beyond classroom instruction.
- Engage workforce partners. Identify employer-supported opportunities that could expand with sustainable funding.
- Model student demand. Estimate how many eligible students could benefit from broader pathway participation.
- Develop an access strategy. Prioritize barriers such as transportation, advising, and transition support.
Connect with Public Consulting Group (PCG) to assess how FSTC may align with your district’s career-connected learning strategy, student access priorities, and workforce readiness goals.
Read the Other Articles in this Series
Educational Access and Funding