Trump Admin Proposes Rules For 1st National School Choice Program

What happened: The Treasury and IRS proposed regulations for the Federal Scholarship Tax Credit program, enacted under the One Big Beautiful Bill Act, which lets taxpayers claim credits for contributions to Scholarship Granting Organizations. Key numbers: Credits up to $1,700 for individuals and $3,400 for joint filers. Program launches Jan. Why it matters: Treasury Secretary Scott Bessent called it America's first nationwide school choice program. Brookings warned FSTC could become a regressive funding source, citing $3,859 per pupil in top-income counties versus $2,233 in bottom ones.

The Treasury and IRS proposed regulations for the Federal Scholarship Tax Credit program, enacted under the One Big Beautiful Bill Act, which lets taxpayers claim credits for contributions to Scholarship Granting Organizations.

Treasury Secretary Scott Bessent called it America's first nationwide school choice program. Brookings warned FSTC could become a regressive funding source, citing $3,859 per pupil in top-income counties versus $2,233 in bottom ones.