Internal Revenue Service

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Piggy bank wearing a graduation cap on stacked books with a globe and pencils, representing education savings, tuition planning, scholarship, student finance, college costs, and future investment.
Image Credit: Manasanan Wongchoomp - Adobe Stock

The Education Freedom Tax Credit: A Historic Win for American Families

A historic expansion of education freedom is underway in America. Signed into law by President Donald Trump on Independence Day 2025, the Federal Tax Credit Scholarship, also known as the Education Freedom Tax Credit, is poised to transform educational opportunities for millions of American children. Beginning January 1, 2027, taxpayers can contribute to an approved nonprofit scholarship granting organization and receive a dollar-for-dollar federal tax credit up to $1,700 for individuals and $3,400 for married couples filing jointly. Importantly, the program has no annual cap on total contributions and does not sunset, creating the potential for billions of dollars in privately funded scholarships each year long into the future. The impact could be extraordinary. By 2030, the U.S. Department of Read More ›