The Federal Scholarship Tax Credit: Voters Want Their Governors to Opt In

Enacted on July 4, 2025, the Federal Scholarship Tax Credit (FSTC) created the nation’s first federal scholarship tax credit. Individuals can claim up to $1,700 annually for contributions to scholarship-granting organizations that support eligible K–12 students. The credit helps families access tutoring, exam fees, test preparation, internet service, and special-needs supports. As of February 2026, 27 states have already signaled plans to participate, and polling shows broad public support—giving governors a practical way to expand opportunities for families without new state spending.