New Details Emerge on Federal Scholarship Tax Credit (FSTC) Implementation

Further details have been clarified regarding the Federal Scholarship Tax Credit (FSTC), a program signed into law as part of the 2025 One Big Beautiful Bill Act. The Treasury Department's proposed rules clarify how scholarship-granting organizations (SGOs) should operate, who qualifies for scholarships (up to 90% of K-12 students nationwide), and what expenses, including private school tuition, tutoring, and after-school programs, the funds can cover.