Texas Governor Greg Abbott has announced the state’s intention to participate in a new federal tax credit scholarship program created by President Trump’s One Big Beautiful Bill. The initiative, which begins in January 2027, allows states to opt in and enables individuals to receive a dollar-for-dollar federal tax credit of up to $1,700 annually for donations made to qualified scholarship granting organizations (SGOs). Any credits exceeding $1,700 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 targets students from families earning at or below 300% of their local median income. These students may apply through SGOs for scholarships that cover tuition or other educational costs at both public and private schools, including services such as tutoring, transportation, and special needs assistance.
Earlier this year, Governor Abbott signed Senate Bill 2 into law, establishing the Texas Education Freedom Account (TEFA) program. This state-level initiative provides eligible students with funds they can use toward approved educational services and providers—including private school tuition and educational therapies—starting with $1 billion allocated for the 2026-2027 school year. The TEFA program is set to become the largest of its kind at launch.
