Southern Education Foundation’s Position on the Federal Scholarship Tax Credit (FSTC)

Atlanta, GA– For nearly 160 years, the Southern Education Foundation (SEF) has worked to advance educational opportunity and protect access to high-quality public education for students across the South. That commitment continues to guide our approach to emerging education policies, including the new Federal Scholarship Tax Credit (FSTC).

Taking effect January 1, 2027, the FSTC provides a dollar-for-dollar federal tax credit of up to $1,700 for eligible contributions to approved scholarship granting organizations (SGOs) in participating states. While SEF has serious concerns about the law’s design that allows public funds to flow to private schools, the measure n also explicitly allows eligible educational services, including tutoring, to support students attending public schools.

With nearly nine in 10 K-12 students, 20 million of whom are in the South, attend public schools, SEF believes states must not overlook these students and their families if they move forward with implementing the tax credit.

The decision to engage with the FSTC follows careful examination of the law and conversations with education advocates, partners, and experts, including those who oppose participation. We recognize and respect those concerns. However, declining to engage will not prevent the law from taking effect. Instead, it could mean public school students miss opportunities to access resources that support their learning.

Engaging with the FSTC is not an endorsement of the law or a departure from our opposition to private school vouchers. Our engagement reflects our responsibility to ensure public school students are not left behind as this new program moves forward.

SEF is focused on ensuring that FSTC-funded resources support high-quality, evidence-based educational services that produce meaningful academic results for students. This includes establishing rigorous standards, responsible implementation, transparency, and accountability, particularly for services such as tutoring. We also believe the program’s outcomes must be carefully monitored and reported to inform necessary policy improvements.

Our priority remains clear: protect and strengthen public education while ensuring the millions of students who depend on public schools are not left behind.