Overview

• Congress folded the Education Choice for Children Act into the One Big Beautiful Bill Act, creating a first-of-its-kind federal tax-credit scholarship that begins in 2027.
• State participation depends on governors approving lists of qualifying scholarship-granting organizations before the program launches.
• Taxpayers nationwide can claim the federal credit for donations even if their state declines to participate, but only residents of opted-in states can receive scholarships.
• Democratic governors face competing pressures, with North Carolina’s Josh Stein saying he intends to opt in, Pennsylvania’s Josh Shapiro considering, Colorado’s Jared Polis undecided, and New York’s Kathy Hochul urged to join.
• Scholarships can cover tuition, tutoring, books, uniforms, transportation, educational technology, and special-needs services, drawing support from school-choice advocates and resistance from teachers’ unions.