WASHINGTON — Parents win. Teachers who put kids first win. The Golden Age just put America’s first nationwide school choice program on the regulatory calendar. On October 1, 2026, the U.S. Department of the Treasury and the Internal Revenue Service issued proposed regulations — IR-2026-117 — to implement the Education Freedom Tax Credit under section 25F, with companion temporary rules so states and Scholarship Granting Organizations can be ready for January 1, 2027.
The numbers are Patriotic and plain. Eligible taxpayers may claim an annual nonrefundable federal income tax credit of up to $1,700 for qualifying cash contributions to eligible Scholarship Granting Organizations — or up to $3,400 for married couples filing jointly. Those dollars fund K–12 scholarships: private-school tuition, tutoring, special-needs services, books, supplies, computers, and other qualifying expenses tied to a student’s enrollment or attendance. Taxpayers may contribute to an eligible SGO regardless of their own state of residence — so long as the state has opted in and listed the organization.
Treasury Secretary Scott Bessent framed the moment for President Trump’s America First education agenda: “Under President Trump, this Administration continues to transform America’s education system to meet the needs of each student… The Education Freedom Tax Credit marks a new chapter in educational freedom and opportunity by establishing America’s first nationwide school choice program… Thirty states have already opted in, and we encourage all 50 states to participate so every American student and family can benefit.”
Education Secretary Linda McMahon went further: “Education freedom is the key to unlocking opportunity and success for our next generation of students… The Education Freedom Tax Credit, the largest expansion of school choice in history, will supercharge those opportunities for millions of children. I am profoundly grateful to President Trump and our partners at Treasury for ensuring that every child has access to the education they need, not one limited by ZIP code, family income, or government-imposed barriers.” IRS Chief Executive Officer Frank J. Bisignano pledged clear rules for families, states, and SGOs.
The proposed package is built to expand access without letting bureaucrats smother choice. Treasury and IRS estimate that under the proposed rules and safe harbors, roughly 96 percent of children in participating states would be eligible for section 25F scholarship funds. States would not be allowed to pile on SGO operating requirements more restrictive than the federal statute — including bans on school types or scholarship expense categories. A multistate SGO safe harbor for organizations whose activities are at least 85 percent scholarship-granting could bring in about 450 additional organizations and up to $3 billion more in annual contributions. Unused credits may carry forward up to five years. Integrity rules — portals, unique donor numbers that avoid collecting Social Security numbers at SGOs, audits, and removal procedures — protect scholarship dollars from fraud.
By 2030, Treasury and the IRS project 600 to 700 SGOs, more than 11 million taxpayers making nearly $26 billion in qualified contributions annually, and as many as 2.2 million scholarships each year. That is Golden Age scale: President Trump signed the statute into law in 2025; today the implementing regs put parental power on a federal runway. Race to the Mid-terms voters who want kids freed from failing ZIP-code monopolies just got their scoreboard update. Watch the Official White House Rose Garden Education Freedom tape — then tell every governor still on the sidelines to opt in.
