Yes. Education Freedom Tax Credit (EFTC) scholarships can help fund tuition and other qualified educational expenses not just for public and private schools, but also faith-based schools as well. For faith-based families, that means educational freedom can include choosing a school whose learning environment, values, and approach fit their child’s beliefs.

ACE Scholarships supports parents in selecting the educational environment that best meets each child’s individual needs. ACE works with many types of faith-based schools and organizations, including Christian and Jewish facilities.

How EFTC Scholarships Can Support Faith-Based K–12 Education

The EFTC creates educational opportunities for eligible K–12 families. Contributions to qualified Scholarship Granting Organizations (SGOs) like ACE Scholarships help fund scholarships for students to access—and afford—the education that best fits their needs.

These scholarships also fund tuition, academic tutoring, special-needs services, books, supplies, and other qualified educational resources needed. Additional Treasury and IRS guidance is still expected on some expense details.

That makes faith-based scholarships relevant to families who believe a religious school provides the environment where their child can thrive. The opportunity is not limited to one faith belief or religion. Because education should be limitless.

Does EFTC Financial Aid Apply to Every Religious School?

Not automatically. Families should not assume that every source of financial aid or every scholarship fund qualifies under the EFTC.

1. Your state must participate in the federal initiative and identify qualifying SGOs by the first of the year.
2. The same distinction applies to a faith-based education foundation or local church that wants to support students.
3. You may also encounter the phrase “scholarship program” when researching educational assistance online. The EFTC is, rather, an educational opportunity because it is a federal tax-credit framework for expanding educational access, not a traditional government assistance program.

Which Students May Benefit?

The EFTC focuses on delivering educational opportunities to  K–12 school students from lower and middle income households (e.g., those earning 300% or less of the annual median income in the area).

Ultimately, the goal is to expand access so more children can learn in environments where they can build confidence, discover their strengths, and reach their potential.

Are EFTC Scholarships Available for Higher Education?

No. The EFTC is designed to expand education for qualifying elementary and secondary education expenses. It is not a scholarship initiative for higher education, colleges, universities, or other postsecondary institutions.

Why Educational Freedom Matters for Families

Every child learns differently. Some families may value the structure of a typical school’s academic model. Others may need specialized instruction, tutoring, smaller classrooms, or services that better support a child’s individual needs. For some, a faith-based environment may also reflect the values they want reinforced during the school day.

The EFTC can help expand access to those opportunities for families and their children. ACE’s role as a qualifying SGO is to help make it possible.

For more than 25 years, ACE has helped connect families with educational opportunities that may otherwise have felt out of reach, working alongside schools, communities, and partners who believe a child’s future shouldn’t be limited by circumstance.

For families exploring religious education, the key takeaway is simple: as the EFTC takes effect in 2027, more families have the opportunity to access a learning environment where their child can learn, grow, and thrive. For families seeking a faith-based education, the EFTC can help put more possibilities within reach.

Check your state’s EFTC participation and learn what’s possible for your family.