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.
October 2026
States would have limited power to set specific conditions for how the first nationwide school choice program would operate in their localities, according to a proposed rule published today ...
October 2026
The US Treasury Department has released the initial operating manual for President Donald Trump’s controversial school choice program, which seeks to funnel billions in federal tax dollars to parents ...
October 2026
WASHINGTON—The Treasury Department will let married couples count as two taxpayers for a novel school-choice tax credit, significantly expanding a program that is expected to funnel tens of billions ...
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