Iowa indicates participation in federal school choice tax credit program

On Jan. 5, Iowa Gov. Kim Reynolds (R) announced that the state would participate in the U.S. school choice tax credit scholarship program, which the One Big Beautiful Bill Act (OBBBA) established when President Donald Trump (R) signed the bill into law in July 2025. The announcement makes Iowa the sixth state to indicate participation in the program. The program is a nonrefundable tax credit that allows individuals to receive federal tax credits for donations to scholarship-granting organizations (SGOs) for private or public educational expenses. States must opt into the program and submit a list of SGOs to the U.S. Treasury

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