School Choice

The Biggest Expansion of School Choice Yet Is Coming in January

Starting next year, a dollar-for-dollar tax credit of up to $1,700 will fund K–12 scholarships. Thirty states have opted in, but many Democratic governors are holding out.

Josh Pauzé | 10.7.2026 3:32 PM

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Starting next year, school choice will be a more attainable option for many American families. 

Beginning in 2027, the IRS will offer the Education Freedom Tax Credit (EFTC), a tax refund for donations to K–12 scholarship programs. The tax credit, which was introduced in the One Big Beautiful Bill Act last year, represents a massive shift in the federal government's approach to the education system. The Trump administration touts it as an unprecedented expansion of school choice and in that respect, it's right.

The EFTC allows individuals to claim a dollar-for-dollar federal tax credit for donations of up to $1,700—or $3,400 for married couples filing jointly—to scholarship-granting organizations (SGOs) to help families earning "no more than 300 percent of the area's median gross income" cover K–12 expenses. This includes private school tuition, tutoring, special-needs services, and supplies. EdChoice estimates that across all private school choice programs in the U.S.—including vouchers, education savings accounts, and tax-credit........

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