New federal voucher program, the Education Freedom Tax Credit, sparks debate among Democrats

A new federal voucher program, the Education Freedom Tax Credit, allows donors to receive a dollar-for-dollar federal income tax credit for contributions to Scholarship Granting Organizations (SGOs). These SGOs convert donations into scholarships for various education costs, including private school tuition. The program, approved in 2025, is predicted to raise nearly $26 billion in scholarship donations by 2030, potentially surpassing the largest source of federal education funding. While most participating states are Republican-led, the program is causing division among Democrats regarding its impact on public schools.