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U.S. Departments of Education and Treasury Release Joint Fact Sheet on Historic Education Freedom Tax Credit

GAB NEWS
Jan 27
2 min read

As the Trump Administration continues its celebrations of National School Choice Week, the U.S. Departments of Education and Treasury today released a joint fact sheet on the Education Freedom Tax Credit that was created by President Trump’s historic Working Families Tax Cuts Act.

The Education Freedom Tax Credit is the largest national expansion of education freedom in history and provides families with more affordable education options.

“The Trump Administration is delivering the largest national investment in education choice through the Education Freedom Tax Credit, now supported by nearly half of America’s governors from both sides of the aisle,” said U.S. Secretary of Education Linda McMahon. “This program will help families afford key education services—like tutoring and scholarships—so they can tailor their child’s educational journey and access opportunities that meet their needs. Every student learns differently, and this investment ensures more families—regardless of income—have real options to pursue education opportunities that help their children thrive.”

“Power belongs in the hands of parents—not Washington bureaucrats whose ill-targeted spending has driven down test scores and promoted woke ideology,” said U.S. Secretary of the Treasury Scott Bessent. “President Trump has built the most pro-school choice Administration in history because he understands this is the best path for students to grow and flourish. The Working Families Tax Cuts created the first-ever federal tax credit for K-12 scholarships at his direction and I congratulate the Governors who have worked to provide greater access to education and educational programs for millions of Americans. I encourage those who not have opted in to act immediately.”

Click here to view the full fact sheet.

As of today, 23 states have opted in to the Education Freedom Tax Credit: Alabama, Alaska, Arkansas, Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Virginia, West Virginia, and Wyoming.

Background:

Using the Education Freedom Tax Credit, taxpayers can receive a credit of up to $1,700 for contributions made to Scholarship Granting Organizations (SGOs) that would otherwise have been owed to the government in Federal income taxes.
SGOs then use these funds to provide scholarships to children to attend a school of choice or to access other education-related services and products.
Scholarships can be used for any qualified education expense of an eligible student, which includes a broad set of expenses incurred in connection with or required by any K-12 public, private, or charter school. Examples include tuition for students to attend private schools of choice, tutoring at public schools, and support services for students with disabilities.