Trump Administration Unveils Nationwide School Choice Tax Credit Modeled on Ohio

On Thursday, the IRS and U.S. Treasury, under the Trump administration, issued proposed regulations establishing a federal Education Freedom Tax Credit, touted as America’s first nationwide school-choice initiative and modeled after Ohio’s system. The credit permits eligible taxpayers to claim up to $1,700 per year, or $3,400 for married couples filing jointly, for contributions to qualified scholarship granting organizations (SGOs).

Aaron Baer, president of the Center for Christian Virtue and leader of the Christian Education Network, welcomed the move, noting plans to launch a national SGO with as many as eight affiliates to manage the new program. The regulations, slated to take effect on Jan 1 2027, mandate that SGOs devote no less than 90% of their revenue to scholarship funding and aim to serve families with incomes up to 300% of the area median.

Treasury Secretary Scott Bessent, Education Secretary Linda McMahon, and IRS CEO Frank J. Bisignano praised the rules for expanding educational choice and safeguarding funds from fraud. Baer’s organization also began a national advertising campaign to inform families about the upcoming credit.