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Thune’s SD SIte
The Leader Board • Remarks
October 2nd, 2026

Republicans Deliver Nationwide School Choice

The Treasury Department’s New Rules Mark a First-of-Its-Kind, Historic Achievement for Students – a Direct Result of the Working Families Tax Cuts

THE NEW EDUCATION FREEDOM TAX CREDIT, CREATED BY REPUBLICANS’ WORKING FAMILIES TAX CUTS, WILL GIVE AMERICANS NEW OPPORTUNITIES TO GET AHEAD

“Education is best overseen by the people closest to every student, and the Education Freedom Tax Credit makes school choice more accessible to those who understand a child’s needs best—their parents.” – Senate Finance Committee Chairman Mike Crapo (R-Idaho)

  • “President Trump’s Working Families Tax Cuts Act delivers the largest national expansion of education freedom in history and provides families with more affordable education options.” (U.S. Departments of Education and the Treasury: U.S. Departments of Education and Treasury Release Joint Fact Sheet on Historic Education Freedom Tax Credit – 1/27/26)
  • “Beginning in 2027, the Education Freedom Tax Credit will expand educational opportunity by encouraging private contributions to participating Scholarship Granting Organizations (SGOs).” (U.S. Department of the Treasury: The Trump Administration Advances the Establishment of America’s First Nationwide School Choice Program – 10/1/26)
  • The Working Families Tax Cuts law also includes a number of other key education policies to help families, students, and workers:
    • “Expanded 529 plan eligibility to include expenses for vocational schools and apprenticeship programs”
    • “Doubled the amount families can withdraw annually from 529 plans to pay for K-12 education”
    • “Made permanent a tax exclusion for employers that help repay their employees’ student loans” (U.S. Senate Committee on Finance: Working Families Tax Cuts Deliver Expanded Educational Opportunity – 7/1/26)

THE TRUMP ADMINISTRATION JUST ANNOUNCED A SET OF RULES TO IMPLEMENT THIS TRANSFORMATIONAL TAX CREDIT, ADVANCING SCHOOL CHOICE FOR STUDENTS NATIONWIDE

“The Education Freedom Tax Credit marks a new chapter in educational freedom and opportunity by establishing America’s first nationwide school choice program and empowering states to give students and families more options.” – Secretary of the Treasury Scott Bessent

“I am profoundly grateful to President Trump and our partners at Treasury for ensuring that every child has access to the education they need, not one limited by ZIP code, family income, or government‑imposed barriers.” – Secretary of Education Linda McMahon

  • “The U.S. Department of the Treasury and the Internal Revenue Service issued proposed regulations to implement the new Federal Scholarship Tax Credit under section 25F, commonly known as the Education Freedom Tax Credit, the first federal tax credit supporting private contributions for K-12 scholarships.” (U.S. Department of the Treasury: The Trump Administration Advances the Establishment of America’s First Nationwide School Choice Program – 10/1/26)
  • “Under the proposed regulations, eligible taxpayers may claim an annual credit of up to $1,700 for qualifying contributions, or up to $3,400 for married couples filing jointly.” (U.S. Department of the Treasury: The Trump Administration Advances the Establishment of America’s First Nationwide School Choice Program – 10/1/26)
    • For married couples filing jointly, “[t]hat essentially lets them direct $3,400 of their federal income tax bill to the school-choice program rather than to general government operations. There is no income cap on who can participate” in donating. (The Wall Street Journal: School-Choice Tax Credit Gets Big Boost From Treasury – 10/1/26)
  • “Scholarship-granting groups [SGOs] will collect donations and then provide money to families with up to 300% of area median income,” so they can “choose private or homeschooling in participating states.” (The Wall Street Journal: School-Choice Tax Credit Gets Big Boost From Treasury – 10/1/26; Associated Press: Federal scholarship for private school and homeschooling opening to most kids in at least 30 states – 10/1/26)
  • “Scholarships may support a broad range of qualified elementary and secondary education expenses, including private-school tuition, academic tutoring, special-needs services, books, supplies, computers and other equipment, and other qualifying expenses connected with a student’s enrollment or attendance.” (U.S. Department of the Treasury: The Trump Administration Advances the Establishment of America’s First Nationwide School Choice Program – 10/1/26)
  • “States must decide whether they want to participate, and 30 states already chose to join, according to the Treasury Department. The state decision determines whether students can benefit; taxpayers in states that don’t opt into the program can still donate to groups in other states and still get the federal tax credit.” (The Wall Street Journal: School-Choice Tax Credit Gets Big Boost From Treasury – 10/1/26; U.S. Internal Revenue Service: Federal Scholarship Tax Credit (FSTC) for donations to scholarship granting organizations (Internal Revenue Code Section 25F) – accessed 10/1/26)
  • “By 2030, the Treasury Department estimates that 11 million taxpayers will contribute a total of $26 billion a year to scholarship groups, giving them up to $26 billion in tax credits and funding up to 2.2 million full-time scholarships.” (The Wall Street Journal: School-Choice Tax Credit Gets Big Boost From Treasury – 10/1/26)
    • “Much of the money is expected to go to private school tuition for students in kindergarten through 12th grade. Public-school students will also be eligible for scholarships for services such as tutoring, and public schools have been trying to figure out how to take advantage of the program.” (The Wall Street Journal: School-Choice Tax Credit Gets Big Boost From Treasury – 10/1/26)

THE AMERICAN PEOPLE SUPPORT FREEDOM FOR CHILDREN TO RECEIVE THE EDUCATION THAT’S BEST FOR THEM AND THEIR PARENTS

  • “As it turns out, the Federal Tax Credit for Scholarships is popular among both the general population and school parents.” (EdChoice: Highlights from the Newly Released 2026 Schooling in America Survey – 8/11/26)
  • “Support is notably higher among school parents (72%) compared to the general public (61%). That said, less than one in five Americans (17%) and school parents (12%) oppose the policy.” (EdChoice: Highlights from the Newly Released 2026 Schooling in America Survey – 8/11/26)
  • Parents overwhelmingly support tax-credit scholarships (82%), school vouchers (79%), and charter schools (75%) – and the general public supports each as well “(72% for tax-credit scholarships, 69% for school vouchers, and 68% for charter schools).” (EdChoice: Highlights from the Newly Released 2026 Schooling in America Survey – 8/11/26)
  • “Nearly all Americans — 92 percent — say a quality education is key to achieving the American Dream, yet most are unhappy with the state of K-12 schools, according to new polling from Gallup and the Milken Center for Advancing the American Dream.” (The Washington Post: Good schools fuel the American Dream — and both feel out of reach, poll shows – 9/24/26)
  • “Researchers noted that adults who are happiest with K-12 schools tended to be the most optimistic about the American Dream. Those respondents are also more likely to believe everyone can achieve the American Dream and the next generation will have more opportunities than the current one.” (The Washington Post: Good schools fuel the American Dream — and both feel out of reach, poll shows – 9/24/26)
  • “These findings come as Americans’ satisfaction with K-12 education falls to a new low. Just 32 percent of adults are happy with the country’s education options…” (The Washington Post: Good schools fuel the American Dream — and both feel out of reach, poll shows – 9/24/26)

SOME DEMOCRAT GOVERNORS KNOW HOW POPULAR THIS POLICY IS AND ARE GETTING IN ON THE CREDIT – BUT OUT-OF-TOUCH CONGRESSIONAL DEMOCRATS ARE TRYING TO STRIP IT AWAY

  • “Colorado Gov. Jared Polis (D) made waves at the end of January by enthusiastically embracing” the Education Freedom Tax Credit. (The Washington Post: Editorial: This ‘no-brainer’ tax credit is splitting governors down party lines – 3/10/26)
  • “Polis told local media he ‘would be crazy not to’ join, noting that the credits empower parents to afford after-school, tutoring, or summer enrichment programs previously out of reach.” (Fox News: Gov Hochul’s plan to opt New York into federal school choice program draws union opposition – 9/14/26)
  • “Gov. Kathy Hochul [D-N.Y.] defended a GOP-backed scholarship program… amid staunch opposition from New York’s powerful teachers union.” (PoliticoPro: Hochul defends federal tax credit amid teacher union backlash – 5/11/26)
  • “Thursday’s announcement will likely increase the pressure on blue-state governors who said they wanted to see regulations before making a final decision.” (Politico: Trump administration unveils education tax credit, ramping up pressure on Democratic governors – 10/1/26)
  • “How will Pennsylvania Gov. Josh Shapiro explain that he passed up $747 million to help his state’s families, assuming 10% donor participation? At that rate, California would forgo $2.25 billion, Illinois $743 million and Michigan $549 million.” (The Wall Street Journal: Editorial: Federal School Choice Could Be Huge – 9/22/26)
  • But the program’s widespread support isn’t stopping congressional Democrats from trying to strip away this new opportunity for American students and families:
    • “Before the rule was even unveiled, Democrats in Congress introduced legislation to repeal the tax credit. Sens. Mark Kelly (D-Ariz.) and Mazie Hirono (D-Hawaii) are leading a bill in the Senate to repeal the credit, while Reps. Gwen Moore (D-Wis.) and Suzanne Bonamici (D-Ore.) are sponsoring a House measure.” (Politico: Trump administration unveils education tax credit, ramping up pressure on Democratic governors – 10/1/26)
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