EdChoice Welcomes Release of 2027 Regulations for the Federal Tax Credit for Scholarships 

Press Release: For Immediate Release 
October 1, 2026 
For more information or to schedule an interview, contact: Mairead Elordi at [email protected] 

INDIANAPOLIS — Today is one of relief and victory for the millions of families across the country seeking help to access educational options for their children.  

The U.S. Department of Treasury released long-awaited temporary rules that will govern implementation of the Federal Scholarship Tax Credit (FSTC), signed into law by President Trump on July 4, 2025. This assures that when the law becomes effective on January 1, 2027, scholarship granting organizations (SGOs) will have clear legal guidelines as they begin accepting donations from charitable individuals who choose to claim a federal tax credit for their donation while helping children access the educational resources they need for learning. 

Treasury took a long time to develop these temporary regulations, wisely soliciting input from those with knowledge of education and insight on how the tax credit will impact existing education funding and school choice programs. 

“EdChoice welcomes the Treasury’s release of the 2027 regulations for the Federal Tax Credit for Scholarships,” Robert Enlow, President and CEO of EdChoice said. 

“Education is the primary responsibility of parents first, then the states, so we have closely analyzed each attempt at a federal tax credit since the first bill was introduced by then-Senator Marco Rubio in 2013. As always, our primary concern is to ensure that the education interests of children are protected and enhanced and that parental rights and state authority over education are preserved. That is why we are so vigilant in making sure the Federal Tax Credit for Scholarships is not overregulated.” 

“These rules are a step in the right direction,” Enlow said. 

“The federal tax credit has the potential to be a significant new funding source for students learning at the elementary and secondary levels who need help accessing additional educational resources like tutoring, special needs services, tuition, and more. Our polling shows that Americans strongly support it. State policymakers should seize this opportunity by working to inform their constituents, and federal policymakers should work to make sure Treasury’s rules and guidance for the FSTC at all times respect the states’ primary role in education and parents’ right to choose the best education for their children,” he said. 

In a welcomed development, Treasury clarified that the $1,700 cap on donations is per individual, meaning married couples filing jointly may donate and claim a credit up to $3,400. Additionally, taxpayers may give to any qualified SGO, regardless of where they live. Treasury intends to continue working on issues related to qualified expenses, interplay with state tax credit programs, impact of homeschool and microschool students in states that do not recognize those entities as schools. After soliciting additional input from citizens, Treasury will construct final rules in 2027 designed for 2028 and years beyond. 

“The Treasury Department not only solicited concerns and desires from the public but actually considered them prior to enacting these regulations. Their dedication to constructing rules that will maximize the workability of the tax credit to the benefit of students and families is appreciated,” said Leslie Hiner, Senior Advisor of Legal Policy at EdChoice. 

Hiner noted that the work of Kevin Salinger, Acting Assistant Secretary (Tax Policy), leading the regulatory work on the tax credit, is especially appreciated. 

Thirty states are participating. Twenty states plus D.C. have failed to act. It is up to governors to officially decide to participate in the FSTC. 

“States can rely on Treasury’s regulations. Now is the time for the remaining states to signal their participation. State leaders continuing to delay are not being cautious; they are gatekeeping, denying education benefits to families and students that can expand access to proven models of success, such as tutoring and school choice. Families have waited long enough,” said Hiner.  

Hiner is on the steering committee of the FSTC Coalition, which will continue to work with Treasury until final rules past 2027 are completed.  

EdChoice will be publishing a detailed analysis of the rules. Check back for updates. 

To be connected with Enlow or Hiner, contact Mairead Elordi at [email protected].   

EdChoice is a 501(c)(3) nonprofit, nonpartisan organization. Its mission is to advance educational freedom and choice for all as a pathway to successful lives and a stronger society. EdChoice is committed to understanding and pursuing a K–12 education ecosystem that empowers every family to choose the learning environment that fits their children’s needs best. Learn more at edchoice.org.