The Trump administration has released Treasury and Internal Revenue Service rules for the Education Freedom Tax Credit, the first federal school-choice tax credit, which is scheduled to begin on January 1, 2027. The program, created by the GOP’s 2025 domestic policy and tax law, would provide a nonrefundable federal income-tax credit of up to $1,700 for individual taxpayers who make qualifying cash contributions to eligible Scholarship Granting Organizations. Married taxpayers filing jointly could claim up to $3,400. The contributions could fund private-school tuition, tutoring, special-education services, books, supplies, computers and other qualifying elementary and secondary education expenses. Treasury said it is preparing guidance on what expenses qualify. Thirty states have opted in, according to Treasury Secretary Scott Bessent, increasing pressure on Democratic governors to participate. The initiative has drawn Republican support as a school-choice expansion and Democratic concerns about its effect on public schools and students. Treasury and the IRS estimate that by 2030 the program could involve 600 to 700 Scholarship Granting Organizations, nearly $26 billion in annual contributions from more than 11 million taxpayers and as many as 2.2 million scholarships.