US federal education scholarship program implementation

The federal Education Freedom Scholarship Program, established under the One Big Beautiful Bill Act, provides tax credits of up to $1,700 to individuals who donate to certified Scholarship Granting Organizations (SGOs). The program is designed to fund tuition, tutoring, and other educational expenses through these nonprofit organizations.

As of August 2026, 31 states have opted into the program, while 19 states and Washington, D.C. have declined. Supporters, including U.S. Secretary of Education Linda McMahon, argue the initiative empowers parents, while critics, such as Democratic governors in Pennsylvania and Illinois, have raised concerns regarding accountability and state oversight.

In Florida, which has opted into the program, the initiative aims to expand existing school choice options to households earning up to 300 percent of their area’s median gross income. While proponents suggest the tax credits will increase the pool of available scholarship funding by minimizing net economic loss for donors, school unions have criticized the program, questioning if it functions as a voucher system that prioritizes private institutions over public schools.