This week, U.S. Senators Tim Scott (R-S.C.) and Bill Cassidy (R-La.), along with Representatives Adrian Smith (R-Neb.), Burgess Owens (R-Utah), and House Committee on Education and Workforce Chairman Tim Walberg (R-Minn.), sent letters to the governors of all 50 states and the mayor of the District of Columbia. The lawmakers urged state leaders to opt in to a new federal scholarship tax credit initiative that would allow students, parents, and scholarship granting organizations (SGOs) in their states to participate.
The letter stated:
“This innovative credit will unlock billions of private dollars to fund scholarships for K-12 students across the country, including in your state.”
It also emphasized that:
“Importantly, this tax credit complements existing state-level education programs. It will not impact federal or state education funding or diminish public schools. Instead, it gives families more options—whether in public or private, religious or non-religious settings—and allows students to either pursue new opportunities or enrich their current education.”
The lawmakers noted the importance of early participation:
“While the tax credit officially launches on Jan. 1, 2027, it is important for states to opt in early to provide certainty to students and SGOs.”
The initiative follows a provision included in the working families tax cuts package based on the Educational Choice for Children Act by Cassidy, Scott, Smith, and Owens. This became the first federal school choice program enacted into law on July 4, 2025.
A recent determination by the Senate parliamentarian requires governors each year to designate participating SGOs so that scholarship opportunities can be made available within their states.
