# US federal K-12 scholarship tax credit implementation > Live situation record from CLSTR: https://clstr.news/situations/us-federal-k-12-scholarship-tax-credit-implementation > Updated: 2026-10-12T21:13:17.000Z. Sources: 22. Developments: 6. Following the passage of the One Big Beautiful Bill Act, a consortium of Jewish organizations including the Orthodox Union and Jewish Federations of North America launched the Opportunity Fund for Jewish Education. This national Scholarship Granting Organization (SGO) is designed to facilitate a federal tax credit program intended to provide scholarship support for K-12 students in participating yeshivos and day schools. In October 2026, the U.S. Department of the Treasury and the IRS released proposed and temporary regulations for the Federal Tax Credit for Scholarships (FTCS), also referred to as the Education Freedom Tax Credit. The rules specify that individual taxpayers can claim a nonrefundable credit of up to $1,700, while married couples filing jointly may claim up to $3,400. Unused credits may be carried forward for up to five years. The Treasury Department estimates that by 2030, more than 11 million taxpayers could contribute approximately $26 billion annually to the program, potentially supporting nearly 700 SGOs. Education Secretary Linda McMahon described the initiative as “the largest expansion of school choice in history,” while Treasury Secretary Scott Bessent stated the credit creates “a new chapter in educational freedom and opportunity.” The program is scheduled to launch on January 1, 2027. While the initiative supports private school tuition, it can also cover tutoring, books, supplies, extended-day programs, and disability services for students in public or charter schools. To qualify for the credit, a student’s family income must be no more than three times the area median income. As of mid-October 2026, approximately 30 to 31 states have opted into the program. New York Governor Kathy Hochul has officially opted in, while New Jersey Governor Mikie Sherrill is currently reviewing the Treasury Department and IRS regulations. ## Claims - Taxpayers can claim a dollar-for-dollar credit of up to $1,700 per year for donations to scholarship-granting organizations. (corroborated by 3 sources) - Married couples filing jointly can claim a total credit of $3,400. (corroborated by 3 sources) - Approximately 30 to 31 states have already opted into the program. (corroborated by 3 sources) - The program is available to students in public, charter, and private schools. (corroborated by 3 sources) - The Federal Scholarship Tax Credit (FSTC) is part of the One Big Beautiful Bill Act signed by President Donald Trump in July 2025. (single source) - New York Governor Kathy Hochul has approved the program. (single source) - To qualify, family income must be no more than three times the area median income. (single source) - States must opt in each year to allow students to access the funds. (single source) ## Timeline ### 2026-10-12: US Education Secretary to highlight new federal scholarship tax credit U.S. Education Secretary Linda McMahon will highlight the Education Freedom Tax Credit, a program launching in 2027 that provides tax credits for donations to scholarship-granting organizations. 2 sources. https://clstr.news/cluster/us-education-secretary-to-highlight-new-federal-scholarship-tax-credit ### 2026-10-12: Federal Scholarship Tax Credit program expands as states opt in The Federal Scholarship Tax Credit program allows taxpayers to claim up to $3,400 in credits for donations to scholarship organizations. Over 30 states have opted in, including New York. 3 sources. https://clstr.news/cluster/federal-scholarship-tax-credit-program-expands-as-states-opt-in ### 2026-10-07: U.S. school choice programs expand via tax credit The U.S. Education Freedom Tax Credit program, set for 2027, aims to support K-12 expenses through SGO donations, potentially generating $26 billion annually by 2030. 2 sources. https://clstr.news/cluster/us-school-choice-programs-expand-via-tax-credit ### 2026-10-04: US Treasury advances federal school choice tax credit The US Treasury and IRS have released regulations for the Education Freedom Tax Credit, a federal school-choice program launching in 2027 that allows tax credits for K-12 scholarship donations. 3 sources. https://clstr.news/cluster/us-treasury-advances-federal-school-choice-tax-credit ### 2026-10-01: U.S. Treasury releases rules for national school choice tax credit The U.S. Treasury and IRS released guidance for the Education Freedom Tax Credit, allowing taxpayers to claim up to $1,700 ($3,400 for joint filers) for K-12 scholarship donations starting in 2027. 10 sources. https://clstr.news/cluster/us-treasury-issues-rules-for-federal-k-12-scholarship-tax-credits ### 2026-09-09: Opportunity Fund for Jewish Education launched to facilitate federal tax credits Jewish organizations have launched the Opportunity Fund for Jewish Education, a national SGO to help taxpayers utilize a $1,700 federal tax credit for K-12 private school scholarships starting in 2027. 4 sources. https://clstr.news/cluster/opportunity-fund-for-jewish-education-launched-to-facilitate-federal-tax-credits --- Cite as: US federal K-12 scholarship tax credit implementation. CLSTR, https://clstr.news/situations/us-federal-k-12-scholarship-tax-credit-implementation