As of Aug. 25, no state has certified eligible scholarship-granting organizations (SGOs) for the Education Freedom Tax Credit (EFTC), which begins on Jan. 1, 2027. SGOs are the organizations that distribute EFTC scholarships to students, but the federal guidance determining their operating rules and the distribution of funds is still forthcoming from the Department of the Treasury. Thirty-one states have indicated that they would participate in the program.
On July 30, 13 education organizations – all of which work either in or with public schools – wrote to the Treasury to encourage it to adopt policies addressing what they said were numerous factors blocking SGOs from starting up or participating at all.
Because public schools provide services free of charge to families, there is debate about how public school students can benefit from the EFTC. Click here to read more about those debates.
