The U.S. Departments of Education and Treasury have released a joint fact sheet detailing the Education Freedom Tax Credit, which was established under President Trump’s Working Families Tax Cuts Act. This announcement coincides with National School Choice Week.
According to the agencies, the Education Freedom Tax Credit represents the largest national expansion of education freedom to date. The program is designed to make education options more affordable for families across the country.
U.S. Secretary of Education Linda McMahon stated, “The Trump Administration is delivering the largest national investment in education choice through the Education Freedom Tax Credit, now supported by nearly half of America’s governors from both sides of the aisle. This program will help families afford key education services—like tutoring and scholarships—so they can tailor their child’s educational journey and access opportunities that meet their needs. Every student learns differently, and this investment ensures more families—regardless of income—have real options to pursue education opportunities that help their children thrive.”
U.S. Secretary of the Treasury Scott Bessent added, “Power belongs in the hands of parents—not Washington bureaucrats whose ill-targeted spending has driven down test scores and promoted woke ideology. President Trump has built the most pro-school choice Administration in history because he understands this is the best path for students to grow and flourish. The Working Families Tax Cuts created the first-ever federal tax credit for K-12 scholarships at his direction and I congratulate the Governors who have worked to provide greater access to education and educational programs for millions of Americans. I encourage those who not have opted in to act immediately.”
The full fact sheet is available online.
Currently, 23 states have chosen to participate in this initiative: Alabama, Alaska, Arkansas, Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Virginia, West Virginia, and Wyoming.
Under this program:
- Taxpayers may claim a credit up to $1,700 for contributions made to Scholarship Granting Organizations (SGOs), reducing their federal income tax liability.
- SGOs use these contributions to fund scholarships that allow children to attend schools of their choice or access other educational services.
- Scholarships cover a wide range of qualified expenses related to K-12 public, private or charter schools—including tuition at private institutions or tutoring at public schools—and support services for students with disabilities.
