The Latest on the Federal School Choice Program | ACE
In July 2025, the first federally funded private-school choice program in U.S. history was established as part of the One Big, Beautiful Bill signed by the president, enabling taxpayers to claim a 100 % federal income-tax-credit on donations (up to $1,700/year) to scholarship-granting organizations that assist with tuition, homeschooling, or private- and public-school costs.
The law is set to go into effect January 2027, pending states’ opt-in and forthcoming regulations from the U.S. Department of the Treasury. Supporters—including ACE Scholarships, a nonprofit operating in 13 states—see the program as expanding educational opportunities for students of all school types, while critics raise concerns over its implications for public-school funding, equity and accountability.
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