Federal Scholarship Tax Credit launches as new national school choice program
The federal government launched the Federal Scholarship Tax Credit program on October 29, 2026, a first-of-its-kind national school choice program that incentivizes taxpayers to donate money to scholarships for K-12 students through the tax code. By 2030, the program is projected to provide more money than Title I, translating into billions of education dollars for private and public school students.
Single source. Only one outlet has reported this so far. This label comes off on its own when a second, independent outlet confirms it.
- When it happened
- October 29, 2026
- Where
- National program affecting all states
- First reported by an outlet
- Not established — no source gave a date
- Reported by
- 1 outlet so far (not yet confirmed)
Taxes & money
| What | Amount | Who pays |
|---|---|---|
| Individual tax credit for donations to scholarship-granting organizations | up to $1,700[1] | federal government |
| Married couple tax credit for donations to scholarship-granting organizations | up to $3,400[1] | federal government |
The facts
- The Federal Scholarship Tax Credit program was created through the One Big Beautiful Bill Act, which President Donald Trump signed into law in 2025.[1]
- The federal government awards dollar-for-dollar tax credits to taxpayers who donate to approved nonprofit scholarship-granting organizations, or SGOs.[1]
- Scholarship-granting organizations award scholarships to students to use for approved expenses such as tutoring at their public school or tuition at their private school.[1]
- Students must be eligible to attend public school in their state and their families cannot make more than 300 percent of their area's median income to qualify.[1]
- State governors face a January 1, 2027 deadline to opt their state into the program, and they must decide each year whether to participate.[1]
- The new federal program will cover some expenses for public school students, unlike traditionally state-funded private school choice programs.[1]
Sources
- News What Is the Federal Scholarship Tax Credit, and How Does it Work? Education Week · Oct 29, 2026
Written by AI from the sources above, under fixed rules: every fact is cited, claims are kept apart from facts, and dollar figures appear only when a source states them. Mistakes get corrected in public.