Texas Governor Greg Abbott announced the state’s intention to participate in the Federal Tax Credit Scholarship program established by President Trump’s One Big Beautiful Bill. The initiative allows Texans to receive a federal tax credit for donations made to qualified scholarship granting organizations.
“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 federal legislation provides individuals with a dollar-for-dollar tax credit up to $1,700 annually when contributing to eligible scholarship organizations. Donations exceeding this amount can have credits carried forward over five years. Students from households earning at or below 300% of the local median income are eligible and may apply for scholarships through these organizations, which can be used toward tuition or other educational costs such as tutoring, transportation, or special needs services at public or private schools. States must formally opt into the program before it begins in January 2027.
Earlier this year, Texas enacted Senate Bill 2, creating the Texas Education Freedom Account (TEFA) program. This measure enables qualifying students to use allocated funds for approved educational services and providers—including private school tuition and instructional materials—starting with $1 billion in funding set aside for the 2026-2027 academic year.
