Governor Abbott Announces Texas’ Intent To Opt In To Federal School Choice Tax Credit Program

TEXAS, December 10 - December 10, 2025 | Austin, Texas | Press Release

Governor Greg Abbott today announced that Texas intends to opt in to the Federal Tax Credit Scholarship program created by President Trump's One Big Beautiful Bill.

"Texas has delivered on its promise to bring education freedom to every Texas family,” said Governor Abbott. "Thanks to President Trump, generous Texans can receive a tax credit for donations to a qualified scholarship granting organization to minimize education expenses for families. This critical program will increase the opportunity for families to choose the educational setting that works best for their child. Texas is proud to partner with the Trump administration to empower parents and ensure a stronger future for our children." 

The One Big Beautiful Bill created a dollar-for-dollar federal tax credit of up to $1,700 a year for individual contributions to a qualified scholarship granting organization (SGO). Credits for donations in excess of $1,700 can be carried forward for up to five years. Students from families at or below 300% of local median income are eligible and will apply to qualifying SGOs for scholarships which may be used for tuition or other educational expenses at a public or private school such as tutoring, transportation or special needs services. States must opt in to in the program, which starts in January 2027.

In May, Governor Abbott signed into law Senate Bill 2 establishing the Texas Education Freedom Account (TEFA) program which allows eligible students to direct funding toward their choice of preapproved educational providers and services such as private school tuition, instructional materials, and educational therapies. With $1 billion in funding for the 2026-2027 school year, the program will be the largest day-one launch in the country. More information on the program can be found here.