Overview

• President Trump signed the One Big Beautiful Bill Act into law on July 4, establishing the Educational Choice for Children Act as the first national school choice tax-credit program.
• Under the permanent, uncapped system, individuals can donate up to $1,700 annually to scholarship-granting organizations for a dollar-for-dollar federal tax credit.
• Eligibility is limited to households earning no more than 300% of their area’s median income and only residents of states that opt into the program can participate.
• Officials at the Treasury and Education Departments are preparing regulatory guidance to implement the program when it launches in 2027.
• Orthodox Jewish groups hailed new funding for faith-based schools, while public education advocates and non-Orthodox Jewish leaders warn it could divert resources from public schools and challenge church-state separation.