Tax Credit Scholarships

Explainer

budget school funding
How States Use Tax Credits to Fund Private School Choice: An Explainer
Twenty-one states have programs that give tax credits for donations to organizations that grant private-school scholarships.
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Image of a funnel with money slices flowing through onto student desks
Collage by Laura Baker/Education Week + Getty
School Choice & Charters A Public School District Wants to Maximize Federal Choice Funds. Here's How
Indiana's largest district is laying the groundwork for big investments through the new federal tax credit program.
Mark Lieberman, October 30, 2026
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6 min read
A photo collage of a 4 pane window on top of a ghosted road map. Each window pane shows a different scene. Clockwise from left: mother holding the hand of her young child as they cross a cross walk toward a school building, middle school boy working a tutor, back of school bus on a rural road, and the back of a young girl working with objects.
Collage by Gina Tomko/Education Week + Canva
School Choice & Charters Public Schools Are Prepping for Federal Choice Cash. They Still Might Not Get It
Educators in states that haven't opted into the new federal program are preparing for their students to benefit.
Mark Lieberman, October 29, 2026
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6 min read
Image of a neighborhood of school buildings, house, government buildings, and a money symbol in the middle.
Trodler/iStock/Getty
School Choice & Charters Explainer What Is the Federal Scholarship Tax Credit, and How Does it Work?
The first national school choice program starts in 2027. Answers to frequently asked questions.
Arianna Prothero, October 29, 2026
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9 min read
Mayor Michelle Wu and Gov Maura Healey arrive at the Otis Elementary School after Wu endorsed Healey in her reelection bid.
Massachusetts Gov. Maura Healey appears in Boston on Oct. 1, 2026, as part of her reelection campaign. Healey is one of five Democratic governors who sent a letter to Treasury Secretary Scott Bessent seeking more clarity on the new federal school choice program before deciding whether to opt her state in.
Stuart Cahill/Boston Herald
School Choice & Charters Democratic Governors Have Questions About the Federal School Choice Program
A letter from five Democratic governors signals some movement as state leaders decide whether to opt in.
Arianna Prothero, October 26, 2026
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5 min read
Collage-style illustration of tall vertical clippings of green lockers, a school bus and a wooden desk, all split apart. In between the images are clippings of text from the IRS webpage that has information about the Federal Scholarship Tax Credit.
Illustration by Emily Wright for Education Week + Getty
School Choice & Charters Opinion Don’t Be Fooled by Claims That Tax-Credit Scholarships Can Help Public Education
The latest federal school choice scheme is a Trojan horse, argue Miguel Cardona and Robert Kim.
Miguel Cardona & Robert Kim, October 23, 2026
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5 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
School Choice & Charters Opinion What Could a Blue Wave Mean for School Choice?
A Democratic wave could slow school choice’s momentum, but established programs are hard to undo.
Rick Hess, October 20, 2026
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5 min read
Maria Contreras, right, opens the door for her son, Ian Contreras, before taking him to school on Thursday, April 9, 2026, in Fort Worth, Texas.
Maria Contreras, right, opens the door for her son, Ian Contreras, before taking him to school on Thursday, April 9, 2026, in Fort Worth, Texas. Private school choice programs—such as Texas' education savings accounts—are shaping debates in close races in a handful of states.
Julio Cortez/AP
School Choice & Charters School Choice Could Prove Pivotal in Some Midterm Races This Fall
"The politics of school choice are being scrambled in real time," says one advocate.
Arianna Prothero, October 20, 2026
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8 min read
Federal tax dollars flow into a public school. Federal school choice funding.
Vanessa Solis/Education Week + Getty
School Choice & Charters Q&A How Much Will Federal School Choice Benefit Public Schools?
"The money is there," says a researcher trying to project how much is there for public school students.
Arianna Prothero, October 15, 2026
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5 min read
Illinois Gov. JB Pritzker speaks at a Texas Democratic Party press conference ahead of the Republican Midterm Convention in Dallas on Sept. 9, 2026.
Illinois Gov. JB Pritzker speaks at a Texas Democratic Party press conference ahead of the Republican Midterm Convention in Dallas on Sept. 9, 2026. Pritzker is among 16 governors who have yet to announce whether their states will participate in the Federal Scholarship Tax Credit, the first national school choice program.
Gabriela Passos/AP
School Choice & Charters Democratic Holdouts Still Aren’t Committing to Trump’s School Choice Program
Sixteen governors still haven't said whether they'll opt in to the first national school choice program.
Matthew Stone & Arianna Prothero, October 14, 2026
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6 min read
A tutor helps students at Benjamin O. Davis Middle School in Compton, Calif., on Feb. 6, 2025.
A tutor works with students at Benjamin O. Davis Middle School in Compton, Calif., on Feb. 6, 2025. The federal tax-credit scholarship program that launches next year can cover select expenses for public school students, including for tutoring. But to receive revenue from the program, public schools could have to set up systems to charge fees that the federally bankrolled scholarships can then cover.
Eric Thayer/AP
Budget & Finance Trump's School Choice Program Could Push Public Schools to Charge New Fees
Districts that charge new fees will likely confront tricky logistical, legal, and philosophical questions.
Mark Lieberman, October 9, 2026
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9 min read
House Minority Leader Hakeem Jeffries, D-N.Y., the top Democrat in the Republican-majority House, is joined by Rep. Pete Aguilar, D-Calif., chair of the House Democratic Caucus, as they criticize President Donald Trump and his policies while talking to reporters about the approaching midterm election, at the Capitol in Washington, Thursday, Sept. 17, 2026.
House Democratic Leader Hakeem Jeffries speaks at the U.S. Capitol on Sept. 17, 2026. He's joined by Rep. Pete Aguilar, D-Calif., who chairs the House Democratic Caucus. If Democrats gain a majority of either chamber of Congress after next month's elections, they'll be able to hold oversight hearings on and launch investigations into the dismantling of the U.S. Department of Education.
J. Scott Applewhite/AP
Federal What a Democratic Congress Could Mean for Trump's K-12 Agenda
They may try to reverse—or at least investigate—the Trump admin.'s efforts to dismantle the Ed. Dept.
Alyson Klein, October 8, 2026
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9 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
Education Funding Opinion An Expert Explains How the Federal Scholarship Tax Credit Will Work
A former Ed. Dept. official predicts the program will generate $3 billion for scholarships in 2027.
Rick Hess, October 2, 2026
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9 min read
MINNEAPOLIS, MN, January 22, 2026: Students move through the halls at Washburn High School in Minneapolis, MN.
The Trump administration has released proposed regulations outlining how the first nationwide school choice program will operate when it launches next year. The regulations leave some major questions unaddressed but clarify other aspects for the tax-credit scholarship program.
Caroline Yang for Education Week
School Choice & Charters Explainer New Rules for Federal School Choice: What You Need to Know
Proposed rules from the IRS offer some details on how the first nationwide school choice program will work.
Arianna Prothero, Mark Lieberman & Matthew Stone, October 1, 2026
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14 min read
The tax credit program would allow individuals who donate up to $1,700 to a scholarship granting organization to receive a dollar-for-dollar federal income tax credit in exchange. Pictured are students at Northeast Elementary located at 1024 Fleming Ave. in Jackson on Aug. 20, 2025.
Students at Northeast Elementary School in Jackson, Mich., on Aug. 20, 2025. A tax-credit scholarship program launching in January will allow individuals who donate up to $1,700 to a scholarship granting organization to receive a dollar-for-dollar federal income tax credit. Those SGOs can give out awards to cover private school tuition as well as some expenses for public school students.
Abra Richardson/mlive.com via TNS
School Choice & Charters Federal Education Tax Credit Rules Are Finally Here. What We Know So Far
The Treasury Department unveiled regulations governing a massive infusion of education funding nationwide.
Arianna Prothero & Mark Lieberman, October 1, 2026
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5 min read