A new education freedom opportunity will launch in January 2027.
The Education Freedom Tax Credit (EFTC), also called the federal scholarship tax credit, allows participating states to expand access to K-12 scholarships that help parents choose the education that works best for their children.
In states that opt in, scholarships may be used for approved education expenses such as tuition, tutoring, instructional materials, educational therapies, transportation, and other customized learning supports.
This is not another federal spending program run by bureaucrats. Participation is voluntary, and states will decide whether families can access these new scholarship opportunities.
Track your state’s decision.
Governors must opt in for students and families in their state to receive scholarships generated by the Education Freedom Tax Credit.
Use the interactive map below to see which states have opted in, opted out, or have not yet decided. Select a state to see more details below.
- Officially Opted In
- Overrode Governor's Opt-In Veto
- Statements on Opting In
- Statements on Opting Out
Sources
Ballotpedia. (n.d.). State participation in the federal K-12 education tax credit program. Ballotpedia. https://ballotpedia.org/State_participation_in_the_federal_K-12_education_tax_credit_program
Internal Revenue Service. (2026). Federal scholarship tax credit (FSTC). U.S. Department of the Treasury. https://www.irs.gov/government-entities/federal-state-local-governments/federal-scholarship-tax-credit-fstc
How the Education Freedom Tax Credit works.
The EFTC is a new federal scholarship tax credit that allows taxpayers to receive up to $1,700 in dollar-for-dollar federal tax credits for contributions to approved Scholarship Granting Organizations (SGOs).
SGOs use those donations to provide scholarships to eligible families for a broad range of approved K–12 education expenses, including tuition, tutoring, curriculum, therapies, special education services, homeschooling expenses, and other educational supports.
But scholarships can only reach students in participating states.
When a state refuses to opt in, families in that state lose access to this source of new education funding. Taxpayers in non-participating states can redirect their donations to support students in participating states. By opting in, states will ensure EFTC-generated resources benefit students and families in their own communities.