The Freedom Scholarship Tax Credit presents a significant opportunity for students in public and private schools. Public awareness of the program is building. Private school parents should learn more about it, and our schools can help.
Washington is uniquely positioned to benefit from the FSTC. With the country’s highest percentage of tax-eligible residents outside of Washington, DC, an estimated 37.74% of residents pay at least $1,700 annually in federal taxes, making them eligible to participate. Even modest engagement could have a meaningful impact on education funding:
- At just 1% participation, an estimated $24 million could be redirected to scholarship-granting organizations (SGOs)
- At 15% participation, that number could grow to approximately $361 million
Impact will depend heavily on awareness. Year one (2027) is expected to be a building phase, requiring consistent outreach and clear communication across school leaders, families, and community networks.
What School Leaders Can Do Now
School leaders play a critical role in helping parents and staff understand the program. It seems like the right time to:
- Share information with families
- Talk with peers and professional networks
- Identify interested donors and help them understand the potential impact
A full 50-state breakdown of donor potential is available here:
https://drive.google.com/file/d/1YTP9avQpzmXRpQ96zxQ0w60g81A3cdK8/view
As details continue to develop, early involvement from school communities will be crucial to ensure this opportunity reaches the students and families it aims to support. Although it remains uncertain whether our Governor will opt into the program by its launch year, Washington taxpayers would still be able to allocate their contributions to SGOs in other participating states.
