FOR IMMEDIATE RELEASE

Southern Education Foundation Announces Alliance to Help Public School Students Benefit from New Federal Scholarship Tax Credit

Initiative will support scholarship granting organizations to expand high-quality, evidence-backed opportunities for students in public schools

ATLANTA, GA. (September 17, 2026) — The Southern Education Foundation (SEF) today announced its intention to help launch an alliance of scholarship granting organizations, or SGOs, focused on ensuring students in public schools have meaningful opportunities to benefit from the new Federal Scholarship Tax Credit program.

Beginning January 1, 2027, the Federal Scholarship Tax Credit (FSTC), or Section 25F, of the federal tax code, will allow eligible taxpayers to receive a dollar-for-dollar federal tax credit of up to $1,700 for qualifying contributions to approved SGOs. The law allows these contributions to support qualifying educational expenses for eligible students attending public or private schools, including tutoring and other educational services.

SEF initially approached the program with significant concerns because of the organization’s longstanding opposition to voucher programs and other policies that use public funds to support access to private schools. However, SEF now approaches the program with a sense of urgency given that it will take effect in January 2027. After further study of the law and consultation with partners and education experts, SEF determined that the program creates an opportunity for public school students that public education leaders should not ignore.

“Our position has evolved as we have learned more about this law,” said Raymond C. Pierce, president and CEO of the Southern Education Foundation. “The question for me became less about whether I agreed with every aspect of the program, because I don’t, and more about what happens now that the program is moving forward. Public school students should have every opportunity to benefit, and organizations committed to public education need to be at the table making sure they do.”

SEF intends to help build an alliance focused on helping SGOs that serve students in public schools build awareness, develop high-quality operations, share evidence and best practices, and create meaningful opportunities for taxpayers who want to use the new federal tax credit to support students in public schools.

SEF believes high-impact tutoring represents one particularly promising opportunity for these resources. Research has demonstrated that well-designed tutoring can improve student learning, but SEF emphasizes that simply directing additional dollars toward programs is not enough. Investments should support high-quality, evidence-backed interventions that can demonstrate meaningful results for students.

SEF brings significant experience to that work through its Center for Outcomes Based Contracting, which has spent years working with school systems and education providers, including tutoring providers, to structure agreements focused on mutual accountability and measurable student outcomes. SEF also draws from research by organizations such as the National Student Support Accelerator on the design and scaling of effective high-impact tutoring.

“In states that decide to participate in this tax credit, we want SGOs that understand public schools and understand the difference between simply funding a program and investing in interventions that actually produce results,” Pierce said. “This is an opportunity to bring additional resources to students, particularly Black students and students from low-income communities who have historically had less access to educational opportunity while also bringing evidence and accountability to how those resources are used.”

Through the alliance, SEF intends to help participating SGOs share standards, evidence, operational guidance, and best practices while building public awareness of opportunities to support public school students through the federal tax credit.

The initiative comes as some states prepare for implementation of FSCT in 2027 and additional federal guidance continues to develop. In states that are opting in, SEF is encouraging public education leaders, districts, education foundations, community organizations and potential donors to begin learning about the program and considering how they can ensure public school students benefit.

“Utilization of the FSTC for the purposes of lifting up public education is not an endorsement of the broader FSTC provision,” Pierce said.  “If these resources are going to be available, I want organizations committed to public education at the table, creating meaningful opportunities for taxpayers to direct their contributions toward the millions of students who attend public schools.”

SEF will convene education leaders and experts on September 23 for Public School Students First: Ensuring the New Federal Tax Credit Works for Public School Students, a webinar examining how the tax credit works, what questions remain, and what states, districts, education foundations, advocates, and community organizations should consider as implementation moves forward.

“Public education needs a meaningful seat at the table,” Pierce said. “SEF intends to help make sure it has one.”

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ABOUT SOUTHERN EDUCATION FOUNDATION

The Southern Education Foundation (SEF) is the nation’s longest-standing education opportunity organization, committed to advancing education policies and practices that elevate learning for students from low-income families and students of color in the South. Since 1867, SEF has worked to disrupt systemic inequities in education by providing technical assistance to build capacity, research-based solutions, shaping public policy, strengthening advocacy efforts, and developing transformational education leaders. As a trusted convener, SEF brings together educators, policymakers, and advocates to drive collective action and lasting change across the South. 

SEF works across the entire education continuum, from early learning to and through postsecondary, to ensure every student, regardless of race, income, or zip code, receives a high-quality education that unlocks opportunity and success. Visit southerneducation.org to learn more.