AFC Calls on Governors to Opt In to the Federal Scholarship Tax Credit

Dallas, TX (January 1, 2026) – The American Federation for Children is calling on all governors to opt in to the federal scholarship tax credit now that the U.S. Department of Treasury approved an advanced election to officially do so starting today (January 1, 2026).

The federal scholarship tax credit (FSTC) is the nation’s first federal law that could expand school choice to families in all 50 states. Starting in 2027, taxpayers may claim a dollar-for-dollar credit of up to $1,700 for contributions to scholarship granting organizations (SGOs), in states that choose to participate, which provide flexible school choice scholarships to families.

Statement from Tommy Schultz, CEO, American Federation for Children: 

“It’s a new year, a new day for school choice, and a new opportunity for governors to embrace educational freedom for families and students in every state in America. We are calling on every governor to opt in, right now, and pave the way for student-centered education funding like we’ve never seen before. Make no mistake about it: This is a no-brainer for governors, and states, to create incredible new opportunities that can benefit the next generation of American leaders.

However, this opportunity will only reach families in states that choose to act. States that fail to opt in risk forfeiting millions in charitable support for their own students, allowing those dollars to flow instead to scholarships in states that embrace this incredible opportunity. Governors and state leaders must move quickly to ensure their students and communities are not left behind.”