The Trump administration has proposed regulations for the Federal Scholarship Tax Credit, the country’s first national school-choice scholarship program. It will begin in participating states, with at least 30 opting in. The Education Department estimates that 96% of children in those states will qualify.

Individuals may donate up to $1,700 to approved scholarship organizations and receive an equal federal tax credit, while married couples filing jointly could donate twice that amount. The organizations will determine awards based on funding and student need. Families may qualify with income up to three times their area’s median level.

Scholarships will be able to cover private or religious school tuition, homeschooling expenses, tutoring, special education therapy, books, computers, and related costs. Public-school students could use the money without leaving their school. Foster children would avoid income verification, while families receiving government assistance could use program participation to establish eligibility.

States may decline to participate but cannot narrow allowable expenses or eligible scholarship groups. Officials project nearly $26 billion for up to 2.2 million scholarships once donations expand.

The program changes school choice from a state policy into a national system supported through federal tax credits. Families in states without voucher programs will now be able to gain access to private education, tutoring, or therapies their public school lacks. Allowing public-school students to participate extends support beyond private-school families.

Its design could expand quickly because eligibility reaches the middle and upper-middle class. State programs in Florida and Arizona show that universal scholarships often go to families whose children already attend private school or are homeschooled, meaning the program may subsidize choices parents were already financing rather than create options for poorer students.

Governors retain the power to keep their states out, creating different access, and participating states cannot impose tighter limits on approved expenses or scholarship organizations. The $26 billion would open educational options to families who cannot afford them now, or flow mainly to households already paying for private school and homeschooling.

Families must still apply through a scholarship organization, and awards will depend on donations, need, and the organization’s rules. Eligibility alone does not guarantee enough money to cover private-school tuition. Before changing schools, parents should compare the scholarship with enrollment deposits, transportation, uniforms, and remaining tuition.

Public-school students may use an award without withdrawing, as the money could cover tutoring after a semester, speech therapy unavailable through the district, homeschool curriculum, or a computer required for coursework. Foster families and households receiving public assistance may face less paperwork when proving eligibility.

The proposed credit would allow individuals to direct up to $1,700 toward scholarships and offset contributions against federal taxes, with couples filing jointly potentially eligible for twice the amount. Scholarship organizations would decide who receives the money, but families awarded assistance could pay for help without having to change schools or absorb the entire expense themselves.

A child struggling with reading could receive tutoring while remaining with classmates, giving parents a way to address the problem before it affects performance in other subjects. Such added flexibility could make educational choices less dependent on what a district offers and more responsive to what an individual child needs.