Twenty-seven states have opted into the Federal Scholarship Tax Credit Program, which will begin on January 1, 2027. The law allows all federal taxpayers to receive a $1700 federal tax credit for donations to scholarship-granting organizations.
The funds can be used for students in states that opt into the program for a broad range of educational purposes, including private school tuition, public school tutoring, afterschool care, technology, and other services. Each state Governor decides whether to opt into the program.
Because the program has no cost for participating states and can benefit both private and public school students, it seems likely that more states will choose to join. There has been some discussion about whether participation will come with conditions for the programs involved. There was a bill in Virginia that drew attention, which would have expanded state oversight in ways detrimental to students and schools. The question remains: Is this what’s coming for all the states that opted in, or is this the reaction of legislators who don’t want the program in their state?
The tax credit program offers a significant opportunity for families. WFIS will monitor federal implementation and state-level developments for signs that states are enacting laws governing how private schools operate. Please stay in touch with questions and insights from other states as we work with the Governor to advocate for funding for students in Washington.
