Find School Choice Programs in Your State

The One Big Beautiful Bill Act, signed into law on July 4, 2025, marks a significant federal step toward supporting school choice through the creation of a nationwide education tax credit scholarship program. Beginning in January 2027, the program will allow individuals to claim up to $1,700 in federal tax credits for donations to state-approved Scholarship Granting Organizations (SGOs), which in turn distribute scholarships to eligible K-12 students. These scholarships may be used for a range of educational expenses, including private school tuition, tutoring, and homeschool curricula. However, states must opt in for families to access the program, and final eligibility rules are pending IRS guidance expected in 2026.

The law also expanded 529 education savings accounts. As of January 2026, families can withdraw up to $20,000 annually per child for qualified K-12 expenses—double the previous cap. These provisions offer immediate benefits while the scholarship program undergoes regulatory development. State participation and specific implementation details will shape how families access and combine federal and state programs. Families should monitor state education agency announcements, IRS updates, and SGO lists to prepare for the 2027–2028 school year and beyond.