Beginning January 1, 2027, the new Federal Scholarship Tax Credit, or FSTC, will allow eligible taxpayers to receive a federal tax credit of up to $1,700 for qualifying contributions to approved scholarship granting organizations, or SGOs, in participating states.
The law also allows these contributions to support qualifying educational expenses for eligible students attending public schools, including tutoring and other educational services.
$1,700
Maximum federal tax credit per eligible taxpayer
Jan. 2027
Contributions may begin January 1, 2027
Public Schools
Public school students are eligible for tutoring and other services
SEF believes public school students should have every opportunity to benefit.
Why SEF Is Engaging
SEF initially approached the program with significant concerns. We have opposed voucher programs and other policies that use public funds to support access to private schools for years. Our position remains clear: public funds should support public schools.
After further study of the law and consultation with partners and education experts, we determined that the program also creates an opportunity that public education leaders should not ignore.
Participation in the FSTC is not an endorsement of the broader legislation. Our focus is on ensuring public school students have meaningful opportunities to benefit and that resources are connected to high-quality, evidence-backed services.
Turning Opportunity Into Action
SEF is taking concrete steps to help ensure public school students can benefit from the FSTC.
Building an Alliance
SEF intends to build an alliance of scholarship granting organizations committed to supporting public school students.
Through the alliance, SEF will help participating SGOs build awareness, develop high-quality operations, share evidence, operational guidance, and best practices, and create meaningful opportunities for taxpayers who want to use the federal tax credit to support students in public schools.
Focusing on What Works
SEF believes new resources should support high-quality, evidence-backed services that can produce meaningful results for students.
Through the Center for Outcomes Based Contracting, SEF brings experience working with school systems and education providers to strengthen implementation, accountability, and measurable outcomes, including in high-impact tutoring.
SEF also draws from research by organizations such as the National Student Support Accelerator on the design and scaling of effective high-impact tutoring.
Join the Conversation
There is still much to learn as states prepare for implementation and additional federal guidance emerges.
Join SEF President and CEO Raymond C. Pierce and a panel of education experts for a conversation about what the FSTC could mean for public school students, what questions remain, and what states, districts, education foundations, advocates, and community organizations should consider as implementation moves forward.
Live Webinar
September 23, 20262 p.m. ET