Texas Governor Greg Abbott has announced the state’s intention to participate in the Federal Tax Credit Scholarship program, which was established by President Trump’s One Big Beautiful Bill. The initiative allows individuals to receive a federal tax credit of up to $1,700 per year for donations made to qualified scholarship granting organizations (SGOs). Any credits for donations above this amount can be carried forward for up to five years.
“Texas has delivered on its promise to bring education freedom to every Texas family,” said Governor Abbott. “Thanks to President Trump, generous Texans can receive a tax credit for donations to a qualified scholarship granting organization to minimize education expenses for families. This critical program will increase the opportunity for families to choose the educational setting that works best for their child. Texas is proud to partner with the Trump administration to empower parents and ensure a stronger future for our children.”
The program is designed so that students from families earning at or below 300% of the local median income are eligible. These students can apply through qualifying SGOs for scholarships, which may be used toward tuition or other educational costs at public or private schools, including tutoring, transportation, or special needs services. States must opt in before the program begins in January 2027.
Earlier this year, Governor Abbott signed Senate Bill 2 into law, creating the Texas Education Freedom Account (TEFA) program. This state-level initiative enables eligible students to use allocated funds on approved educational providers and services such as private school tuition, instructional materials, and therapies. With an allocation of $1 billion for the 2026-2027 academic year, TEFA is set to become the largest launch of its kind nationally.
