Austin

Texas Governor Greg Abbott Commits to Federal Tax Credit Scholarship Program in Education Reform Push

AI Assisted Icon
Published on December 11, 2025
Texas Governor Greg Abbott Commits to Federal Tax Credit Scholarship Program in Education Reform PushSource: World Travel & Tourism Council, CC BY 2.0, via Wikimedia Commons

In a move that could reshape the educational landscape in Texas, Governor Greg Abbott has declared the state's intent to participate in the Federal Tax Credit Scholarship program, an initiative stemming from President Trump's legislation. "Texas has delivered on its promise to bring education freedom to every Texas family,” Abbott said, as stated in an announcement by the Office of the Texas Governor.

Designed to bolster school choice, the program offers tax credits of up to $1,700 for donations to scholarship-granting organizations (SGOs), with a dollar-for-dollar match. Credits above that amount can roll over for up to five years. Arriving at a time when traditional public schools face increasing scrutiny, the initiative aims to give Texas families more control in selecting educational options that best fit their children’s needs. The Federal Tax Credit Scholarship program is scheduled to launch in January 2027 and will support students from families earning at or below 300% of the local median income, as reported by the Office of the Texas Governor.

Earlier in May, Abbott had also advanced this trajectory by signing Senate Bill 2, which launched the Texas Education Freedom Account (TEFA) program. The TEFA is designed to direct funding towards a range of educational services that include, but are not limited to, private school tuition and educational therapies. With an impressive budget allocation, boasting $1 billion set aside for the 2026-2027 school year, TEFA stands ready to become the most sizable inaugural program of its kind in the United States. More details about the TEFA program, as well as the changes it is expected to bring, can be found here.