Invest in Education Marks One-Year Anniversary of Historic Federal Scholarship Tax Credit Law
Washington, D.C. – As America approaches its 250th Anniversary, the nation is reflecting on the ideals of freedom, opportunity, and the promise of future generations. One year ago, those ideals were advanced through the enactment of the nation’s first permanent Federal Scholarship Tax Credit Program. Today, Invest in Education celebrates this historic milestone and the growing momentum to expand educational opportunities for students and families across America.
The Federal Scholarship Tax Credit Program, effective on January 1, 2027, will generate billions of dollars in private charitable contributions to qualified scholarship granting organizations (SGOs). SGOs, in turn, will provide low-income to middle class families with scholarships to access a broad range of educational expenses, including tutoring, educational technology, transportation, specialized services, after-school programs, tuition, and other qualified educational expenses. The program is funded entirely through private donations and would add funding for public and private school students.
“One year ago, our nation took a historic step toward expanding K-12 educational opportunity for students and families,” said Anne Lesser, President of Invest in Education Coalition. “Today, we are focused on turning that historic victory into meaningful opportunities for millions of children by helping states, SGOs, and community leaders prepare for a successful launch in 2027.”
Since the law’s enactment, significant progress has been made toward implementation. Treasury and IRS officials provided a preview of forthcoming Treasury and IRS guidance for implementation and 30 states across the country have elected to participate in the program. Invest in Education has worked alongside hundreds of SGOs, education organizations, policymakers, community leaders, and advocates to educate families, support implementation efforts, and help build the national infrastructure needed for the program’s successful rollout.
Because participation is voluntary, governors must formally opt their states in to the program before families can receive scholarships. Invest in Education is encouraging governors in the remaining states to act promptly, so SGOs, taxpayers, and families have adequate time to prepare before the federal scholarship tax credit law becomes effective January 1st.
For more information about the Federal Scholarship Tax Credit Program or to learn which states are already set to participate, visit https://investineducation.org/.
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About Invest in Education Coalition
Invest in Education Coalition is a 501(c)(4) organization that advocates at the federal level to protect and expand the Federal Scholarship Tax Credit Program that will directly empower parents of students in K-12 education throughout the nation to choose the best school or education service for their children.