All4Ed Flash
All4Ed Flash is All4Ed’s video-shorts podcast series on important developments in education policy brought to you by the All4Ed policy team. Watch the most recent episode below, or search our library for older episodes. Episodes are also available on our YouTube channel and as a podcast.
We regularly update in both English and en Espaรฑol.
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Will the New Federal Scholarship Tax Credit Benefit Public School Students?
The One Big Beautiful Bill Act established a new Federal Scholarship Tax Credit (FSTC), launching in 2027. The program allows taxpayers to claim a federal tax credit for contributions to Scholarship Granting Organizations (SGOs), which provide scholarships for eligible students’ education-related expenses.
But what does this new program mean for public school students, and how can it benefit students from low-income families?
In this episode of All4Ed Flash, we break down the Federal Scholarship Tax Credit, explore the role of Scholarship Granting Organizations, and examine what scholarships can cover. We also explain what states need to do to participate, the outstanding questions surrounding eligible education expenses, and why public school advocates should pay attention as the program takes shape.
With implementation approaching, important decisions remain about how the program will operate and whether its funding will reach the students who need it most.
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