AFC Celebrates Iowa Governor Kim Reynolds Opting in to Federal Scholarship Tax Credit 

Dallas, TX (January 6, 2026) – The American Federation for Children applauds Governor Kim Reynolds for announcing her intent to opt in to the newly created federal scholarship tax credit and offer even more school choice to Iowa students and parents.  

The federal scholarship tax credit unlocks an opportunity for every governor to expand school choice, and with Monday’s announcement, Governor Reynolds is among the early adopters in confirming her intention to do so. Set to take effect in 2027, the law will allow every American taxpayer to receive a dollar-for-dollar credit up to $1,700 for contributing to state-based scholarship granting organizations (SGOs). The FSTC is a monumental step toward bringing school choice to every state.  

Statement from Tommy Schultz, CEO, American Federation for Children  

“Iowa has long embraced educational freedom, and with this announcement, Governor Reynolds cements her commitment to Iowa families and students yet again. After successful growth in its state-level school choice programs, Iowa joins the movement to embrace expanding school choice even further, setting the stage for a golden age in American education in Iowa and beyond.”