A new federal tax credit program tucked into a broader tax bill passed by Congress could significantly expand private school scholarship options for low and middle-income families nationwide — if states choose to participate.
President Donald Trump's One Big Beautiful Bill creates a federal income tax credit of up to $1,700 per year for individuals who donate to certified scholarship granting organizations. These groups, typically nonprofits, use donations to fund private school tuition scholarships for students from qualifying low-income households.
