President Trump Unveiled Federal Tax Credit Rules
The new program provides tax credits for private school contributions and sets student eligibility standards.
Updated on Oct. 1, 2026 in Financial Aid
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President Trump has released the federal rules for the Education Freedom Tax Credit, a program designed to provide alternatives to the public school system. The policy allows individual taxpayers to claim up to a $1,700 tax credit for donations made to Scholarship Granting Organizations.
Why it matters
The program aims to expand access to Christian education by incentivizing private contributions to scholarship funds. By providing financial support to households earning up to 300 percent of the area median gross income, the initiative seeks to broaden educational options for families across the country.
Eligible Scholarship Granting Organizations must dedicate 90 percent of their revenue to student scholarships. The program is available to students from households earning up to 300 percent of the local median gross income.
The players
President Donald Trump
He is the current President of the United States.
Christian Education Network
This organization serves families and more than 200 Christian schools in eight states.
The details
The Christian Education Network is actively promoting the initiative through its Stop Settling, Expect More campaign, which supports over 200 Christian schools across eight states. The organization recently announced new partnerships with affiliates in seven states to manage the influx of donor contributions.
Timeline
October 1, 2026: President Trump unveiled the tax credit rules in Columbus, Ohio.
Through December 31, 2026: The Stop Settling, Expect More campaign runs.
January 1, 2027: The Education Freedom Tax Credit officially takes effect.
Roadmap
The Education Freedom Tax Credit represents a major shift from traditional state-funded education models to a donor-driven model. This policy aligns with broader efforts to diversify the American educational landscape beyond the public school system.
Taxpayers may now plan their charitable giving with the expectation of receiving up to $1,700 in tax credits starting in 2027. Households meeting the income eligibility threshold should review their local area median gross income to determine if their students qualify for new scholarship opportunities.
The takeaway
Donors interested in the tax credit should ensure the organizations they contribute to meet the strict 90 percent scholarship revenue requirement. Families should monitor local Christian school partnerships in their states to identify upcoming scholarship application windows.
What happens next
The federal Education Freedom Tax Credit program is scheduled to officially take effect on January 1, 2027.
Further reading
Learn more about federal programs by visiting the Financial Aid section.
More information
For more information on the program, visit the CEN SGO information portal.
Source note: This article includes information reported by Religion News Service.
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