Scholarship Overview
The Education Freedom Tax Credit initiative introduces the first nationwide school choice program in the United States, scheduled to begin on January 1, 2027. Established under proposed and temporary guidelines from the U.S. Treasury Department and the IRS, the initiative allows states to voluntarily participate and authorize non-profit 501(c)(3) scholarship-granting organizations (SGOs) to manage and distribute funding to eligible families.
Funding for the program relies on voluntary contributions from individual taxpayers. Donors can contribute up to $1,700 annually to approved SGOs—not to exceed their income tax liability—and receive a 100% federal income tax credit. Estimates indicate that by 2030, the program could generate around 2.2 million annual scholarships managed by 600 to 700 SGOs.
Who Can Apply
To qualify for funding, students must meet key location and financial requirements:
- Residency: Students must live in a state that chooses to join the federal program. Participating states must formally commit to joining by January 1, 2027.
- Income Limits: Qualification is open to students from households earning up to 300% of their local area's median gross income.
- Simplified Eligibility: Streamlined verification processes are available for foster children, families utilizing needs-based assistance, and students living in lower-income areas who receive specialized disability services or tutoring.
Benefits
Scholarships can be used to cover various educational costs across public, private, and home settings, including:
- Private school tuition payments.
- Public educational expenses such as textbooks and computers.
- Academic tutoring and specialized services for students with disabilities.
How to Apply
Direct application instructions for individual students are not specified in the source; please check the official notice. Participating states have until February 15, 2027, to submit their approved lists of SGOs, which will handle award administration.
Source: fully funded scholarships 2026 - BingNews · Published October 02, 2026
Always confirm deadlines and eligibility on the official scholarship website.