Texas Governor Greg Abbott announced on December 10 that the state will join the Federal Tax Credit Scholarship program, which lets taxpayers claim a dollar-for-dollar federal tax credit for donations to scholarship-granting organizations (SGOs).
‘Texas has delivered on its promise to bring education freedom to every Texas family,’ Governor Abbott said. Under the Federal Tax Credit Scholarship program, students from families earning up to 300% of the local median income can apply through SGOs. Tax credits can reach $1,700 per year, and donors may carry forward excess contributions for up to five years.
Taxpayer contributions to the scholarship can cover tuition as well as tutoring, transportation, and special-needs services at public or private schools. The program begins in January 2027, and states must opt in to participate.
Texas has allocated $1 billion to the Texas Education Freedom Account (TEFA) program for the 2026–2027 school year. Signed into law with Senate Bill 2 in May, TEFA lets students use funds on preapproved educational services and providers. The program is described as the largest day-one launch of its kind in the country.
As these initiatives promise widened horizons for the Texan educational landscape, more updates and details surrounding the TEFA program and how families can benefit can be found through state resources. As Texas leans into these new choices, the efficacy and impact of such programs on educational outcomes and equity will be watched with keen interest by policymakers and families alike.
