Governor Abbott Announces Texas Will Opt In to Federal School Choice Tax Credit Program

December 11, 2025 – Governor Greg Abbott announced Wednesday that Texas will participate in the new Federal Tax Credit Scholarship program established under President Trump’s One Big Beautiful Bill, positioning the state to expand parental choice in education beginning in 2027.

“Texas has delivered on its promise to bring education freedom to every Texas family,” Abbott said in a statement. He noted that the program allows Texans to receive a dollar-for-dollar federal tax credit—up to $1,700 per year—for donations to qualified scholarship-granting organizations (SGOs). Contributions exceeding that amount may be carried forward for up to five years.

Under the federal initiative, students from families earning up to 300% of the local median income can apply for scholarships through SGOs. Funds may be used not only for private school tuition but also for a range of educational expenses, including tutoring, transportation, and special-needs services. States must formally opt in, and Texas will join the program when it launches in January 2027.

Abbott emphasized that partnering with the Trump administration will “increase the opportunity for families to choose the educational setting that works best for their child,” calling it a major step toward empowering parents statewide.

The announcement comes months after Abbott signed Senate Bill 2, which created the Texas Education Freedom Account (TEFA) program. TEFA allows eligible students to direct state funding toward approved educational providers and services. With $1 billion allocated for the 2026–2027 school year, officials say it will be the largest first-year education savings account launch in the nation.

State leaders say the combination of TEFA and the new federal tax credit program will significantly broaden school choice options, giving Texas families more control over their children’s educational paths.