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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The U.S. Capitol building in Washington, D.C. on Friday, July 17, 2026.
The U.S. Capitol building in Washington, D.C. on Friday, July 17, 2026.
Eric Lee for Education Week
Education Funding Video What's in Store for School Funding for 2026-27?
A new education tax credit, federal budget negotiations, and more are in store.
Mark Lieberman, Marvin Joseph & Yi-Jo Shen, August 5, 2026
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1 min read
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Seniors line up during their graduation rehearsal at the Capital City Public Charter School in Washington on June 11, 2026. A new analysis breaks down the number of students in each state who could qualify for financial awards under the new federal tax-credit scholarship program launching next year. The awards could cover private school tuition as well as certain expenses for traditional public and charter school students.
Marvin Joseph/Education Week
School Choice & Charters Vast Majority of Students Could Qualify for Trump's School Choice Program
Although most students are expected to be eligible, four factors will shape its ultimate size.
Matthew Stone, July 30, 2026
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7 min read
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The Vermont State House in Montpelier, Vt., on Friday, July 12, 2024. Vermont last week became the first state to enact rules restricting scholarships awarded under a new federal school choice program to public school and low-income students.
Ted Shaffrey/AP Photo
School Choice & Charters A State's New Law Sets Up Clash With Trump's School Choice Program Rules
A state passed new requirements if it opts in to the new federal scholarship tax credit program.
Matthew Stone, June 23, 2026
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6 min read
Gov. Tina Kotek speaks at a meeting of the Oregon Prosperity Council in Portland on Jan. 22 . In a new poll of Portland metro area voters, only a third of respondents said they have a positive opinion of Kotek.
Gov. Tina Kotek of Oregon speaks at a meeting of the Oregon Prosperity Council in Portland on Jan. 22. 2026. Kotek said Friday she wouldn't opt Oregon in to a new federal tax credit program that, starting next year, will bankroll scholarships for K-12 students that can cover private school tuition, home-school expenses in some states, and certain expenses for public school students.
Mark Graves/The Oregonian via TNS
School Choice & Charters Another Democratic-Leaning State Will Pass on the Federal School Choice Program
Thirty-one states are on track to participate in the first federal tax-credit scholarship program.
Matthew Stone, June 12, 2026
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4 min read
Graduation cap and dollars. Scholarship or student loan concept.
Getty
School Choice & Charters How Can Public Schools Participate in Trump's Federal Choice Program?
The Trump administration has confirmed public schools can receive federal scholarship funds. Here's how.
Matthew Stone, Evie Blad & Mark Lieberman, June 11, 2026
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7 min read
New York Gov. Kathy Hochul reads "Snowflakes Fall" to daycare children at the Department of Labor on Dec. 20, 2023, in Albany, N.Y. Hochul on Jan. 3, 2024, said she will push for schools to reemphasize phonics in literacy education programs, a potential overhaul that comes as many states revamp curriculums amid low reading scores.
New York Gov. Kathy Hochul reads "Snowflakes Fall" to children on Dec. 20, 2023, in Albany, N.Y. Hochul became the latest Democratic governor to say she'll opt her state in to the federal tax-credit scholarship program that takes effect next year, and will direct federal taxpayer funds to private school scholarships.
Will Waldron/The Albany Times Union via AP
School Choice & Charters A Large Democratic-Led State Says Yes to Trump’s School Choice Program
Thirty-one states are on track to participate in the first major federal foray into private school choice.
Matthew Stone, May 8, 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 A New Federal Education Tax Credit Is Creating a Dilemma for Blue States
A new tax credit is forcing Democrats to navigate the tensions of politics and principles.
Rick Hess, April 28, 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
School Choice & Charters Opinion Can School Choice Programs Stamp Out Fraud While Staying Flexible?
With the rollout of the Federal Scholarship Tax Credit program, transparency is vital.
Rick Hess, April 7, 2026
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7 min read
Children play during recess at an elementary school in New Cuyama, CA on Sept. 20, 2023. Can a program that represents the federal government’s first big foray into bankrolling private school choice end up helping public school students?
As Democratic governors decide whether to sign their states up for the first major federal foray into private school choice, some say they want public school students to benefit. Here, children play during recess at an elementary school in New Cuyama, Calif., on Sept. 20, 2023.
Marcio Jose Sanchez/AP
School Choice & Charters The Federal Choice Program Is Here. Will It Help Public School Students, Too?
As Democrats decide whether to opt in, some want to see the funds help students in public schools.
Matthew Stone, February 5, 2026
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9 min read
Tennessee Gov. Bill Lee speaks during a news conference Tuesday, Nov. 28, 2023, in Nashville, Tenn.. Lee presented the Education Freedom Scholarship Act of 2024, his administration's legislative proposal to establish statewide universal school choice.
Tennessee Gov. Bill Lee speaks in favor of establishing a statewide, universal private school choice program on Nov. 28, 2023, in Nashville, Tenn. Tennessee lawmakers passed that proposal, and Lee is also opting Tennessee into the first federal tax-credit scholarship program that will make publicly funded private school scholarships available to families. Tennessee is one of 21 participating states and counting.
George Walker IV/AP
School Choice & Charters Federal Program Will Bring Private School Choice to At Least 4 New States
More state decisions on opting into the first federal private school choice program are rolling in.
Matthew Stone, January 26, 2026
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6 min read
Penelope Koutoulas holds signs supporting school choice in a House committee meeting on education during a special session of the state legislature Tuesday, Jan. 28, 2025, in Nashville, Tenn.
Penelope Koutoulas holds signs supporting school choice in a House committee meeting on education during a special session of the state legislature on Jan. 28, 2025, in Nashville, Tenn. The federal government has made its biggest push yet for school choice under the Trump administration.
George Walker IV/AP
School Choice & Charters Private School Choice Gets Supercharged in Trump's 2nd Term
At the same time, his administration is pledging to dial back the federal role in education.
Brooke Schultz, October 9, 2025
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6 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 the New Federal Tuition Tax Credit Mean for School Choice?
Just what this new program will mean for your state is still uncertain.
Rick Hess, October 7, 2025
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7 min read
Penelope Koutoulas holds signs supporting school choice in a House committee meeting on education during a special session of the state legislature Tuesday, Jan. 28, 2025, in Nashville, Tenn.
Penelope Koutoulas holds signs supporting school choice in a House committee meeting on education during a special session of the Tennessee state legislature on Jan. 28, 2025, in Nashville, Tenn. After the passage of the first federal tax-credit scholarship, all states will have to decide whether to opt into the new program.
George Walker IV/AP
School Choice & Charters Tracker Federal School Choice: Which States Are Opting In?
Education Week is tracking state decisions on the first federal tax-credit scholarship.
Matthew Stone, Brooke Schultz & Lynn (Yunfei) Liu, August 27, 2025
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3 min read
Students walk from buses into Daviess County Middle School on the first day of classes for Daviess County Public Schools, Tuesday, Aug. 12, 2025, in Owensboro, Ky.
Students walk from buses into Daviess County Middle School on the first day of classes for Daviess County Public Schools on Aug. 12, 2025, in Owensboro, Ky. Parents generally give public education low marks, but they don't believe the U.S. Department of Education should be dismantled.
Greg Eans/The Messenger-Inquirer via AP
Families & the Community What Americans Really Think of Public Schools
Americans continue to give a higher grade to their local schools than to the nation's education system as a whole, a new poll finds.
Evie Blad, August 19, 2025
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5 min read