AFC Celebrates New Treasury Guidance, Citing Major Step Forward for the Education Freedom Tax Credit
Dallas, TX – The American Federation for Children celebrates the release of new U.S. Department of the Treasury guidance for the Education Freedom Tax Credit (EFTC) ahead of the January 1 launch, giving every remaining governor the details needed to participate.
Governors have all the information needed to make this historic opportunity available to families in their states. While 31 states plan to participate, nearly 21 million students remain in states that have not yet opted in. Complete participation nationwide would make an estimated 52 million children scholarship eligible.
The new guidance establishes a clear framework for implementation and clarifies that there will be no “marriage penalty” for couples filing jointly, both of whom will be eligible to contribute up to $1,700 and receive a dollar-for-dollar tax credit. Thanks to this guidance, SGOs like the AFC Scholarship Fund will be positioned to serve millions more children nationwide, with the potential to unlock up to $75.1 billion in additional donor funding.
Additionally, governors can now designate scholarship granting organizations (SGOs) in their states; requirements for SGO compliance, reporting, and program integrity are now fully outlined; and taxpayers now have clarity on contributions when the law goes into effect in 2027.
The EFTC creates a dollar-for-dollar federal tax credit for taxpayers who contribute to qualified K-12 scholarship granting organizations, creating the potential to unlock billions of dollars in new scholarship funding and school choice opportunities for children. The American Federation for Children has launched the AFC Scholarship Fund to support families across the country.
Statement from Tommy Schultz, CEO, American Federation for Children:
“Treasury’s guidance marks another major step toward making the Education Freedom Tax Credit a reality for families across America. Allowing married couples filing jointly to contribute up to $3,400 will increase the ability for Americans to support scholarships and strengthen educational opportunities for children. Ahead of the January 1 launch, we encourage every remaining governor to opt in and ensure families in their state can access expanded school choice. The American Federation for Children will continue to open the doors of education freedom for families nationwide, both through our advocacy efforts and through implementation of the law with the AFC Scholarship Fund. We are deeply appreciative of Senator Cruz’s tireless advocacy on this landmark law, and we applaud Secretary Bessent for his leadership in ensuring this tax credit reaches its full potential for American families.”
About AFC:
The American Federation for Children is the nation’s largest school choice advocacy organization and a leading force in advancing education freedom. AFC has helped pass more than 200 school choice laws nationwide, empowering families with meaningful options and elevating parent voices in education policy. The organization’s affiliated Super PAC, AFC Victory Fund, is focused on electing education reform champions at state and federal levels. The organization launched its affiliated national scholarship granting organization (SGO), the AFC Scholarship Fund, in 2026, to fully maximize this generational opportunity.
