Sioux Falls Board Creates Tax Credit Scholarship Fund
The fund lets residents direct tax dollars toward scholarships for eligible local students, with contributions set to begin January 1.
Updated on Nov. 12, 2026 in Scholarships
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The Sioux Falls School Board approved the SFSD Tax Credit Scholarship Fund, which will provide scholarships for eligible students. Contributions are scheduled to begin January 1 and will be made through payroll withdrawals or when paying federal income taxes.
Why it matters
The program allows residents to keep some tax dollars in the community while supporting students from lower-income families. It operates under a federal tax credit program that South Dakota has chosen to join.
Individuals can contribute up to $1,700 annually and married couples up to $3,400, with eligibility for students from families below 300% of the federal poverty level. How much the fund will raise and how many awards it will make have not been announced.
The players
Sioux Falls School Board
The elected governing body of the Sioux Falls School District, which approved creation of the scholarship fund.
Robert Sittig
A former Baltic school superintendent who will serve as the program coordinator for the SFSD Tax Credit Scholarship Fund.
Larry Rhoden
The Governor of South Dakota, who announced last year that the state would participate in the federal tax credit scholarship program.
Donald Trump
The President of the United States, who signed the "One Big Beautiful Bill" that included the federal scholarship tax credit.
The details
Contributions can be made through automatic payroll withdrawals or when paying federal income taxes. Robert Sittig, a former Baltic school superintendent, will serve as the fund's program coordinator, and the fund will verify student eligibility under Treasury and IRS requirements.
Timeline
Last year: Governor Larry Rhoden announced South Dakota's participation in the federal program.
This week: The Sioux Falls School Board approved creation of the fund.
January 1, 2027: Contributions are scheduled to begin.
Next fall: Scholarships are likely to be awarded at the start of the school year.
Policy Rollout
The Sioux Falls fund is a local implementation of the federal scholarship tax credit added through the "One Big Beautiful Bill" signed by President Donald Trump. South Dakota's decision last year to opt into that program set the stage for districts like Sioux Falls to create their own funds.
Residents who contribute can reduce their federal tax obligation while directing support to Sioux Falls students. Families below 300% of the federal poverty level may qualify for scholarship assistance once awards begin.
The takeaway
Residents who want to support local students can watch for the January 1 contribution start date and check eligibility rules before giving. Payroll withdrawals offer a simple way to contribute on a regular schedule.
What happens next
Contributions are scheduled to begin January 1, 2027, and scholarships are likely to be awarded at the start of the next school year.
Further reading
Explore more local options in the Scholarships section for Sioux Falls families.
Source note: This article includes information reported by Sioux Falls Live.
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