New Federal Tax Credit Boosts School Choice—but Blue States Face Big Decision

In the Wall Street Journal article “Tax Credit for Private Schools Sets Up State‑by‑State Fight,” education policy correspondent Matt Barnum outlines the first-ever federal private school tax-credit program, enacted in President Trump’s major “megabill” legislation, the “One Big Beautiful Bill.” It authorizes a dollar‑for‑dollar federal income tax credit—up to $1,700 per individual per year—for donations to nonprofit scholarship‑granting organizations that support low‑ and moderate‑income families (up to 300% of area median income) seeking private schools for their children . While the policy marks a significant school‑choice milestone at the national level, its impact depends entirely on whether each state opts in to allow charities to operate under the new federal program—a decision expected to pit advocates of educational freedom against public‑school advocates and teachers’ unions in state capitals across the country.