Chairman Smith on Treasury’s School Choice Announcement: Republicans are Delivering on the Promise of Lower Costs, More Educational Freedom
WASHINGTON, D.C. – Families across America are one step closer to lower education costs and more choices for their children after the Treasury Department and IRS proposed rules to implement the Education Freedom Tax Credit. The credit was created by the Working Families Tax Cuts, which Republicans in Congress delivered alongside President Trump. Up to $1,700 per taxpayer can be claimed for contributions to K-12 scholarship organizations that provide resources to families in their communities who are seeking greater choices in their child’s education. Thirty states have already opted into the program ahead of the credit’s launch on January 1, 2027.
Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement:
“Every parent should be able to choose the school that’s right for their child, no matter where they live or how much they earn. Yet for too many working families, the cost of tuition, tutoring, or special-needs services has kept those choices out of reach. Republicans changed that with the Working Families Tax Cuts. We created America’s first nationwide school choice program and expanded 529 accounts so families can use their savings for more K-12 expenses and trade school. We also made a bigger $2,200 Child Tax Credit permanent, providing parents with more money to invest in their children’s future.
“Democrats have shamelessly fought this effort every step of the way. Not one of them in Congress voted for the program, and now governors from their party in several states are blocking their own families from taking part. While they defend a one-size-fits-all system, Republicans are standing with parents whose children are trapped in failing schools and helping them afford the education their children deserve. I thank President Trump and Secretary Bessent for moving quickly to deliver this historic expansion of educational opportunity.”
The Education Freedom Tax Credit lowers costs and opens new doors for students and parents:
- Taxpayers can claim a dollar-for-dollar credit of up to $1,700 per taxpayer for donations to K-12 scholarship organizations.
- By 2030, Treasury estimates more than 11 million taxpayers could contribute nearly $26 billion a year, funding as many as 2.2 million scholarships annually.
- About 96 percent of children in participating states would be eligible for scholarships. Those scholarships help families cover costs like private school tuition, tutoring, special-needs services, books, and computers.
- Under the proposed rules, states could not restrict the types of schools scholarship recipients attend or the qualified expenses scholarships cover.
- New safeguards protect scholarship dollars from fraud, including unique donor numbers so scholarship organizations never have to collect donors’ Social Security numbers.
READ: Thanks to Republican Tax Relief, This Year’s National School Choice Week Comes with Expanded Educational Freedoms, Supports for Families
READ: Chairman Smith: One Year In, President Trump Improving the Lives of All Americans
READ: Big, Beautiful Success Story: Empowering Parents and Students to Choose the Best Education for Them
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