Treasury Finalizes Rules for $26B Federal School Voucher Program
The U.S. Treasury and IRS released proposed rules for the Education Freedom Tax Credit, the nation’s first federal school voucher program, set to launch January 1, 2027. The initiative offers a dollar-for-dollar tax credit of up to $1,700 per individual ($3,400 for joint filers) for donations to scholarship-granting organizations. These funds can cover private school tuition, tutoring, and public school expenses like special education services. While the program aims to expand choice, it faces opposition from teachers' unions and civil rights groups who fear reduced public school funding and increased racial disparities. Democratic governors face pressure to decide whether to opt their states into the voluntary program before the January deadline.