Which States Are Opting In?

State officials must decide in the coming years if they’ll participate in the first major federal program that directs public funds to private schools.

Congress in July included a tax-credit scholarship in the One, Big Beautiful Bill Act, allowing taxpayers to claim tax credits in exchange for donations to organizations that grant private school scholarships.

Until now, all major private school choice programs have been state-level initiatives. But the federal tax-credit scholarship forces all states and the District of Columbia to decide on private school choice, whether they currently have a choice program of their own or don’t.

State decisions on opting in so far

Under the new law, individual taxpayers can claim a dollar-for-dollar tax credit for up to $1,700 in donations to nonprofit organizations that award scholarships so K-12 students can attend private schools.

Students whose family income does not exceed 300% of their area’s median gross income—a broad pool of potential recipients—are eligible to receive scholarship funds as long as their state opts into the scholarship program. The federal law does not specify the size of scholarships awarded.

The scholarships could cover a range of expenses. In addition to tuition at private schools, including religious schools, they could pay for tutoring, school uniforms, technology, after-school programs, transportation, and services for students with disabilities.

Taxpayers can claim credits starting in the 2027 tax year.

Most states have yet to make formal decisions on opting in as they await federal rules and guidance clarifying the provision. However, Republicans who have responded to EdWeek’s inquiries have been supportive of the federal choice program. Democrats have been more skeptical, but a handful have said they’re looking into how the funding could help low-income students or support public schools.

Observers expect most Republican-led states ultimately to opt in and use the federal offering to complement their own state programs or, in the few Republican-led states without private school choice, to create their own.

Democratic responses are expected to be more mixed.

Read Education Week’s coverage of the federal private school choice program

For more information on state private school choice programs, visit our tracker of state programs.

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Federal Private School Choice: Which States Are Opting In? (2025, Aug. 27). Education Week. Retrieved Month Day, Year from https://www.edweek.org/policy-politics/federal-private-school-choice-which-states-are-opting-in/2025/08