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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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 Private School Choice: Which States Are Opting In?
Education Week is tracking state decisions on the first major federal program that directs public funds to private schools.
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
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 Tuesday, Jan. 28, 2025, in Nashville, Tenn. The One, Big Beautiful Bill Act championed by President Donald Trump includes the first federal school voucher program. States will decide whether to opt in to the offering.
George Walker IV/AP
School Choice & Charters Opt In or Not? States Weigh Big Decision on Federal School Vouchers
A new federal program provides tax credits for donations to groups that provide private-school scholarships.
Brooke Schultz, August 4, 2025
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7 min read
From left, Quentin J. Lee, superintendent of Talladega City Schools, Keith Konyk, superintendent of Elizabeth Forward School District, and Eric Mackey, Alabama's state superintendent of education, discuss the latest K-12 policy changes at the ISTELive 25 + ASCD Annual Conference 25 on July 2, 2025.
From left, Quentin J. Lee, superintendent of Talladega City Schools in Alabama; Keith Konyk, superintendent of Elizabeth Forward School District in Pennsylvania; and Eric Mackey, Alabama's state superintendent of education, discuss the latest K-12 policy changes at the ISTELive 25 + ASCD Annual Conference 25 on July 2, 2025.
Kaylee Domzalski/Education Week
Federal What Superintendents Think About a Steady Clip of Federal K-12 Changes
A state superintendent and two district leaders shared their thoughts on the latest changes coming from Washington.
Jennifer Vilcarino, July 3, 2025
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4 min read
The Senate side of the Capitol is seen in Washington, early Monday, June 30, 2025, as Republicans plan to begin a final push to advance President Donald Trump's big tax breaks and spending cuts package.
The Senate side of the Capitol is seen in Washington early on June 30, 2025, hours before Republicans narrowly passed President Donald Trump's big tax breaks and spending cuts package. The bill includes the first major federal private school choice program.
J. Scott Applewhite/AP
Federal The Senate Passed a Federal Voucher Program. What's in It?
The measure would create a national program funding private school tuition through tax credits, though states would have to opt in.
Brooke Schultz, July 2, 2025
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7 min read
President Donald Trump speaks as reporters raise their hands to ask questions, Friday, June 27, 2025, in the briefing room of the White House in Washington.
President Donald Trump speaks as reporters raise their hands to ask questions, June 27, 2025, in the briefing room of the White House in Washington. The Senate parliamentarian has rejected a slew of provisions in what's known as Trump's Big Beautiful Bill, including one for a nationwide private school choice program.
Jacquelyn Martin/AP
School Choice & Charters Federal Private School Choice Proposal Hits a Roadblock. Will Congress Persist?
Including tax-credit scholarships in Trump's tax cut package violates Senate rules.
Mark Lieberman, June 27, 2025
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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 The School Choice Landscape Is Shifting
What could two Supreme Court rulings—one recent and one impending—mean for educators and parents?
Rick Hess, June 10, 2025
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8 min read