Federal School Choice Program Set to Launch in 2027 with New Tax Credit Rules

The U.S. Treasury Department has released rules for the new federal Education Freedom Tax Credit, a nationwide school choice program established by the 2025 One Big Beautiful Bill act. Starting in 2027, taxpayers can receive a dollar-for-dollar federal tax credit of up to $1,700 per individual filer (or $3,400 for married couples) for donations to scholarship-granting organizations. These organizations will disburse funds to families for expenses like private school tuition or tutoring. States must opt-in for their residents to benefit, with 31 states already participating or on track to do so.