LITTLE ROCK – Rules released yesterday by the U.S. Treasury Department provide a framework for the new Federal Scholarship Tax Credit, a program that will provide financial support for families as they pursue the best educational option for their children’s needs.

“Arkansas is fortunate in that, even with leaders dedicated to state-level programs that empower families to pursue a variety of educational options, Gov. Sarah Huckabee Sanders still ensured Arkansas was among the first states to announce plans to opt into the new federal scholarship,” said Emmy Henley, managing director of educational nonprofit The Reform Alliance.

Yesterday’s rules provide concrete steps for states to participate in the federal scholarship, as well as guidance for nonprofits to become participating Scholarship Granting Organizations (SGOs), meaning they can accept donations to the scholarship program and make awards.

“As yesterday’s rules have made clear, anyone who pays federal taxes can donate to the scholarship and claim a credit of up to $1,700 per person, and that includes married couples filing jointly who can claim up to $3,400,” Henley said. 

Student eligibility for the new federal scholarship includes those in households at or less than 300 percent of the average regional income. By that metric, analysts project more than 88 percent of all students in Arkansas will be eligible. Additionally, scholarships can be awarded to both public and nonpublic education students and can be used for expenses like tutoring, after-school enrichment, special services and therapies for students with disabilities, tuition, and more. Scholarships are expected to be available beginning in the 2027-28 school year.

“The regulations released yesterday offer so much more than a framework for a new federal program. They give federal taxpayers the opportunity to become philanthropists for education and provide qualifying families access to new resources for their children’s K-12 education. That is enormously exciting,” Henley said.

“The proposed regulations defer to states to determine what constitutes a school, and therefore, who is eligible for the scholarships. Arkansas law recognizes homeschools as schools, and most microschool students are legally considered homeschoolers. We therefore expect Arkansas homeschool and microschool families to be able to benefit from these scholarships alongside families in public and private schools.