North Carolina Just Took a Major Step

Is New York About to Opt Into the New Federal Scholarship Tax Credit Program? Here’s What We Know. Over the last two weeks, there has been growing national buzz surrounding reports that New York Governor Kathy Hochul may support opting New York into the new Federal Scholarship Tax Credit program, sometimes referred to as EFTC. ( Chalkbeat) And understandably, people are paying attention. If New York were to officially opt in, it would represent one of the biggest moments yet for the new federal scholarship tax credit program. New York is not only one of the largest states in the country, but also one with enormous educational diversity, strong nonprofit infrastructure, and a large population of families that could potentially benefit from scholarship opportunities. But while the excitement is real, it is important to separate confirmed action from political signaling. What Has Actually Been Said? Recent reports indicate that Governor Hochul privately expressed support for the federal scholarship tax credit program and that members of her administration later publicly acknowledged that support. ( Chalkbeat) According to statements attributed to the Governor’s office, Hochul is “supportive” of the program and its potential benefits for New York students and schools. However, her administration has also stated that they are still reviewing the federal program details and watching for what they described as possible “poison pills” or federal conditions that could negatively impact New York’s education system. ( Chalkbeat) That distinction matters. At this moment, New York has not officially opted into the program. There has been no finalized executive action, formal state participation announcement, or completed implementation process announced publicly by the state. Why This Matters Nationally Even the possibility of New York participating is generating major attention because it signals something much larger happening across the country: The new Federal Scholarship Tax Credit program is becoming increasingly bipartisan. Over the past several months, Democratic and Republican governors alike have begun publicly discussing participation in the program. ( CT Insider) That is significant because the program has often been misunderstood as a traditional school voucher initiative, when in reality, it functions differently. The federal scholarship tax credit program is built around private charitable giving. Eligible taxpayers can receive a federal tax credit for donations made to approved Scholarship Granting Organizations (SGOs), which then distribute scholarship funds for eligible educational expenses. That model has changed the conversation in many states. A Word of Caution At , we believe it is important to approach this moment with both optimism and realism. There is absolutely reason for excitement. The fact that states like New York are even publicly discussing participation shows how quickly the national landscape is evolving. But there is also a growing tendency online for rumors, headlines, and social media posts to move faster than official policy. Right now, the safest and most accurate statement is this: Governor Hochul has signaled support and openness toward the new Federal Scholarship Tax Credit program, but New York has not yet officially opted in. That could still happen. It also could change depending on federal guidance, political negotiations, implementation concerns, or future state-level decisions. What Schools and Organizations Should Be Doing Regardless of what happens next in New York, one thing is becoming increasingly clear across the country: Preparation matters. Schools, scholarship organizations, nonprofits, and community leaders should already be preparing for the possibility of implementation by focusing on: Donor education Community outreach Scholarship infrastructure Parent communication Financial aid strategy Operational readiness SGO partnerships The organizations that prepare early will likely be positioned far better than those waiting until participation becomes official. The Bigger Picture Whether New York officially opts in tomorrow, next month, or later down the road, the national momentum surrounding the new Federal Scholarship Tax Credit program is undeniable. The conversation has shifted from “Will this happen?” to “How should states prepare?” And that is a very different conversation than the one happening even a year ago. We will continue monitoring developments closely and sharing updates as more official guidance and announcements emerge. Return Home

A Major Step Forward: Treasury and IRS Request for Comment on the New Federal Scholarship Tax Credit Washington announced a long-awaited update for the national school choice community. The Department of the Treasury and the IRS released Notice 2025-70, officially opening the public comment period for the new federal tax credit established under the One, Big, Beautiful Bill. This is the earliest look at how the federal government plans to implement what will become one of the most transformative funding opportunities for students across the country. What the Notice Confirms Beginning January 1, 2027, individual taxpayers will be able to claim a nonrefundable federal tax credit of up to $1,700 for cash contributions made to qualified Scholarship Granting Organizations (SGOs). These scholarships are specifically intended for elementary and secondary students from low- and middle-income families. This is a national version of what many states have done for years with programs like EITC, EDS, and other state-level credits, but for the first time ever, it is available to taxpayers in every participating state. What Treasury and IRS Are Asking For Notice 2025-70 signals that full proposed regulations are coming, but federal agencies are actively seeking input now. They want comments on: • How States will certify SGOs Every participating State must annually verify which organizations meet the statutory definition of an SGO. The IRS is requesting feedback on what this certification should look like and how it can be done accurately. • The policies and procedures States must use States need a reliable system to ensure the SGOs they list are operating within legal guidelines. The Notice asks for input on what processes should be required or encouraged. • How to handle multi-state or unique SGO structures Some organizations operate only in one state. Others fundraise nationally and award scholarships regionally. The IRS wants to understand these realities to avoid excluding legitimate organizations inadvertently. • Recordkeeping and reporting for SGOs Transparency and accountability will be essential. The IRS is seeking comment on what reporting requirements will ensure compliance without overburdening the organizations doing the work. Why This Matters For the first time, there will be a federal mechanism for families across the nation to support scholarship opportunities for K-12 students. The potential impact is enormous: More scholarship dollars for low- and middle-income families Greater access to educational choice Increased opportunity for schools to expand programming National-level support for private and non-public education models But the details matter, and the rulemaking over the next year will determine how seamless or complicated the rollout becomes. How to Submit Comments If you want to contribute to shaping this program, comments must be submitted by December 26, 2025: Electronically: Use the Federal e-Rulemaking Portal and reference IRS-2025-0466 By Mail: Internal Revenue Service CC:PA:01:PR (Notice 2025-70) Room 5503, P.O. Box 7604 Ben Franklin Station Washington, DC 20044 What Comes Next The Treasury and IRS intend to issue proposed regulations after reviewing public comments. These rules will outline how SGOs, states, schools, and donors interact with the new federal credit. This is the start of the most significant national expansion of educational choice in decades. States, schools, and SGOs that prepare now will be ready to capture the full benefit when 2027 arrives. Return Home

DFER’s New Projections on the Federal Tax Credit Program Are a Game-Changer Every once in a while, data comes out that makes you sit back and say, This could change everything. That is exactly how I felt looking through the new projections that Democrats for Education Reform (DFER) released on the Federal Scholarship Tax Credit program. For anyone following the rollout of the new federal tax credit law set to begin in 2027, these projections are some of the clearest and most compelling evidence yet of what this program can unlock for students across the country. And honestly, the numbers are incredible. A Clear Breakdown of Funding Potential, State by State What I appreciate most about DFER’s work is how they took a complex policy and broke it into something every parent, educator and policymaker can understand: How much funding students in each state could receive if their state opts into the new federal tax credit program. Their detailed state-by-state analysis is published here : https://www.dfer.org/2025/10/06/new-data-projects-potential-24-billion-boost-for-students-through-educational-choice-for-children-act-ecca-2/ One number immediately jumped out at me. In a state like Pennsylvania, the projection is over $967 million dollars. Nearly a billion dollars in potential educational support including tutoring, after school programs, learning materials, scholarships and more, all available if the state opts in and families participate. That is not theoretical. That is life changing. Why This Matters for Schools and Students This program gives students access to things that often fall through the cracks in traditional school budgets: Tutoring After school programs Learning materials Technology and internet access Enrichment programs Scholarships Because taxpayers can redirect up to $1,700 in federal tax liability, nonprofit SGOs can distribute support directly to students who need it most. It is simple. It is powerful. It is long overdue. A Huge Opportunity If States Seize It The data also highlights something important: States must opt in before students can benefit. This is not automatic. It requires leadership. It requires action. And it requires a willingness to innovate instead of sticking with business as usual. DFER’s projections make it clear what is at stake. Billions of dollars that could change a child’s learning experience or be left untouched. For Those of Us Working in School Advancement, This Is Fuel At RedefinED, our work revolves around helping schools access the funding and resources they need to grow, serve and support more students. These projections give us more than numbers. They give us strategy, clarity and momentum. The opportunity ahead is one of the biggest in modern education. And DFER just gave the country a blueprint for what is possible. Now the Question Is: Who Will Step Up The federal program is coming. The resources are there. The need is undeniable. DFER laid out the potential. Now we need leadership, action and urgency to turn that potential into real change for students. If you have not reviewed the projections yet, I highly recommend digging in. They are inspiring, energizing and a powerful reminder of how much brighter the future could be for students across this country. Return Home