Who Qualifies for an EFTC Scholarship? Income Limits Explained

Students may qualify for an Education Freedom Tax Credit (EFTC) scholarship if their household income is at or below 300% of the area median gross income and they are eligible to enroll in a public elementary or secondary school.

The initiative is designed to expand access to educational opportunities, including qualifying support for students in public and private school settings.

But how does the income requirement work, and what does it mean for your family?

What Is the EFTC Income Limit?

Federal law sets the maximum income threshold at 300% of area median gross income (AMI). Area median income reflects income levels within a specific county. Unlike a single national income limit, the EFTC threshold accounts for where a family lives.

Does This Mean Every Family Below the Limit Qualifies?

Not automatically.

Meeting the federal income threshold is one part of eligibility. A student must also be eligible to enroll in a public elementary or secondary school.

Additionally, a participating Scholarship Granting Organization (SGO) may establish eligibility priorities within the federal requirements.

For example, an SGO may focus on students from households with incomes below the maximum federal threshold.

Scholarship availability and award decisions will also depend on participation, funding, and the organization’s application process.

Can Public School Students Receive EFTC Scholarships?

Yes. The EFTC initiative is not limited to students attending private schools.

Eligible students may receive scholarship support for qualifying educational expenses, including certain learning opportunities that complement their existing education.

Depending on the applicable federal requirements, expenses may include tuition, tutoring, special needs services, and other qualifying educational costs.

The specific expense must meet federal qualification rules.

This flexibility matters because families have different educational needs. One student may need extra reading support. Another may benefit from specialized instruction or a different learning environment.

The goal is to give families more ways to help their children thrive.

How Will Household Income Be Verified?

Treasury’s October 2026 proposed regulations outline a framework for verifying income eligibility.

It includes proposed verification methods intended to reduce unnecessary paperwork for qualifying families.

For example, participation in certain means-tested public assistance programs may help establish income eligibility under the proposed verification rules.

These procedures are not all final and may change before implementation.

How Can Parents Prepare?

Families interested in EFTC scholarships can begin by learning about eligibility and identifying their children’s educational needs. It may also help to understand the applicable income requirements and follow developments in state participation.

When participating SGOs announce application procedures, families should review the specific eligibility and documentation requirements.

ACE Scholarships believes parents are best positioned to understand what their children need to reach their full potential.

The EFTC initiative can help more families turn that understanding into meaningful educational opportunities.