The greatest K12 financial “gamechanger” is not federal cuts to Medicaid nor the current financial freeze, but the latest school choice tax credit scholarship provision added to President Donald Trump’s “One Big Beautiful Bill Act.” In fact, it could mean billions in new money for K12 education.
Georgetown University’s Edunomics Lab predicts the tax credit scholarship provision could ramp up to nearly $28 billion per year in funds for K12 schools.
As part of the provision, the bill creates an individual, dollar-for-dollar tax credit of up to $1,700 per individual taxpayer for contributions to state-approved, federally recognized nonprofits that provide scholarships for eligible children, starting Jan. 1, 2027. There’s also no cap on the total amount of donations, and states are required to opt into the program.