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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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
Wed., September 30, 2026, 2:00 p.m. - 3:00 p.m. ET
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What schools need to know about the federal Education Freedom Tax Credit: A practical guide from a licensed teacher and policy expert.
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Giant tax funnel drops money into a public school building. Federal tax scholarships, public schools, private schools, charter schools
Vanessa Solis/Education Week + Getty
Federal Opinion Public Educators Are Skeptical of the New Federal Tax Credits. They Needn't Be
Unlike vouchers, the new scholarships can benefit students choosing to attend public schools.
Deborah A. Gist & Thomas Arnett, September 29, 2026
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5 min read
Secretary of Education Linda McMahon, center, arrives for a news conference about President Donald Trump s Education Freedom Tax Credit on March 27, 2026 at Hamtramck Academy in Hamtramck, Mich.
Secretary of Education Linda McMahon, center, arrives for a news conference about President Donald Trump's tax-credit scholarship program on March 27, 2026 at Hamtramck Academy in Hamtramck, Mich., where she urged Michigan Gov. Gretchen Whitmer to opt her state in. The Trump administration, through the Department of the Treasury, is expected to release regulations for the program in the coming days. Several governors have said they're awaiting those regulations before deciding whether their states participate.
Katy Kildee/The Detroit News via TNS
Education Funding Federal Tax Credits for K-12 Scholarships: What We Know (and Don't)
The Trump administration is preparing to issue rules for its new, ambitious school choice program.
Mark Lieberman & Arianna Prothero, September 23, 2026
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11 min read
President Donald Trump, center right, walks with Education Secretary Linda McMahon, center left, and guests after a back to school event in the Rose Garden of the White House, Monday, Aug. 24, 2026, in Washington.
President Donald Trump, center right, walks with Education Secretary Linda McMahon, center left, and guests after a back-to-school event in the Rose Garden of the White House on Monday, Aug. 24, 2026, in Washington. A new report envisions a number of scenarios in which the new federal school choice program launching next year could become one of the nation's largest K-12 funding streams.
Alex Brandon/AP
School Choice & Charters Could Trump's School Choice Program Rival Title I or IDEA in Size?
A new report looks at how much money could be raised under different scenarios.
Arianna Prothero, September 10, 2026
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6 min read
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
Vermont State House 24197596488760
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