Overview

• The One Big Beautiful Bill Act permanently authorizes a federal tax-credit scholarship program allowing individuals to donate up to $1,700 per student for K-12 education nationwide.
• Donors receive a 100% dollar-for-dollar credit, with eligibility capped at households earning below 300% of area median income and no federal spending limit imposed.
• States must opt in and designate nonprofit scholarship-granting organizations before the program’s scheduled launch in 2027.
• Proponents such as the American Federation for Children and Orthodox Jewish advocacy groups praise the law for expanding school choice and lowering tuition barriers.
• Critics warn that the lack of clear federal anti-discrimination standards and oversight could lead to fraud and blur church-state separation.