On Sept. 29th, Nebraska Gov. Jim Pillen (R) issued an Executive Order directing State Agencies to prepare for Participation in the U.S. First Federal School Choice Tax Credit Program, which will take effect on Jan. 1st, 2027.
The Program was part of the Federal Budget Reconciliation Bill, the One Big Beautiful Bill Act, that Trump (R) Signed on July 4th. When the Credit takes effect, People will be able to Write Off, or Subtract, up to $1,700 from the Amount of Federal Taxes they owe, if they Donate to Approved Scholarship Organizations that Help Students Pay for School. These Scholarship Granting Organizations (SGOs) will then Distribute the Funding to Eligible Students for K-12 Educational Expenses, including tutoring, public school extracurricular programs, and private school tuition.
The Scholarships would be Available to Families making up to 300% of the Region's Median Income. States must Opt-In to Participate in the Program, though Donors in States that do Not Join the Program, can still Send Money to SGOs in other Parts of the Country. Participating States must Submit an Annual List of Designated SGOs to the U.S. Treasury.
Before the Program can take Effect, the U.S. Treasury will use the Rulemaking Process to Develop and Issue Regulations Governing its Implementation, including Eligibility Requirements and Oversight Procedures.
Although this is the First Federal Program providing Eligible Students with Government Funding for Private K-12 Expenses, 34 states have Adopted School Choice Policies. Those include Vouchers, Education Savings Accounts (ESAs), and Tax-Credit Scholarships.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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