United States implements new federal school voucher program

The United States government is preparing to implement a new federal school voucher-style program under the ‘One Big Beautiful Bill Act’. The program allows individuals to donate to scholarship granting organizations (SGOs) in exchange for a tax credit of up to $1,700. These SGOs, which are nonprofit organizations, can retain up to a 10 percent administrative fee before distributing the remaining funds to eligible families.

Families can use these funds, which are treated as tax-free income, for a variety of education-related expenses including tuition, room and board, computers, and internet access. While the Trump Administration has yet to issue final guidelines, the program is designed to expand private school choice.

Critics and experts have raised concerns regarding the program's impact. The Education Law Center estimates the federal cost could range from $5 billion to $51 billion in the coming year, depending on state participation. Because the program is not mandatory, individual states must choose whether to opt in and designate an SGO. Concerns have been raised that the program may divert essential funding from public schools—which serve 80 percent of U.S. students—to benefit wealthier families already enrolled in private education.