FOR IMMEDIATE RELEASE: Thursday, August 27, 2026
CONTACT: Christina Johnson
Tallahassee, Fla. – Today, Florida TaxWatch (FTW) released a briefing entitled, “New Federal Scholarship Tax Credit Program Expands Educational Choice Options,” and undertakes this commentary to better understand the Education Freedom Tax Credit (EFTC) scholarship program, how it works, and its impact on the public education system and Florida families.
The “One Big Beautiful Bill Act,” signed by President Donald J. Trump on July 4, 2025, established the EFTC designed to expand educational options for all school-aged children by encouraging donations to Scholarship Granting Organizations (SGOs) like Step Up For Students that, in turn, grant Education Freedom Scholarships to students for qualified elementary and secondary education expenses within the states they serve.
Florida TaxWatch President and CEO Jeff Kottkamp said, “Through the operation of one of the nation’s most expansive universal school choice systems, Florida continues to be a leader in providing educational choice options for students and families. The Education Freedom Tax Credit scholarship is one such example which empowers parents by providing additional financial resources with which to tailor their children’s education. These scholarships help ensure parents can select the specific schools, learning services, or materials that best suit their children’s unique learning needs.
“Moreover, the tax credit incentivizes private investment into education by granting a dollar-for-dollar tax credit, making it an attractive way for individuals to support students. This federal expansion will generate billions of dollars in new scholarship funding, and by designating scholarships for households earning up to 300 percent of their area’s median gross income, families who might not otherwise qualify for low-income-only programs will now have additional opportunities.”
Every K-12 student is eligible for taxpayer-funded scholarships, in the form of Education Savings Accounts (ESAs), to attend private schools or to cover home education expenses. Families can also choose from traditional public school open enrollment, public charter schools, and magnet schools. Through this robust array of school choice programs, Florida empowers every family and every child to achieve their educational goals. In total, nearly 1.4 million students are utilizing a school choice option in Florida, which represents more than 50 percent of taxpayer funded students.
To make EFTC scholarships available, a state must first voluntarily elect to participate and provide a list of SGOs that meet the federal statutory requirements to the Internal Revenue Service no later than January 1 of each calendar year. Florida Governor Ron DeSantis announced on January 28, 2026, that Florida would “opt in” to the tax credit established by the federal legislation, becoming one of 31 states (as of July 2026) that have opted in. Taxpayers can begin claiming the tax credit for contributions made beginning in January 2027, and although the amount of an individual donor’s tax credit is limited to $1,700, scholarship amounts are not capped.
A 2025 study by DFER (Democrats for Education Reform) estimates the current EFTC scholarship program could redirect more than $24 billion annually from individual taxpayers using this tax credit program to decrease their tax liability to support this scholarship program. The same report estimates an annual redirection of $800 million in states that have a one percent participation rate in the FSTC program. As participation grows each year, the program’s estimated annual income and redirected tax revenue increase accordingly.
To learn more and access the briefing, please click here.
About Florida TaxWatch
As an independent, nonpartisan, nonprofit government watchdog and taxpayer research institute, and the trusted “eyes and ears” of Florida taxpayers for more than 47 years, Florida TaxWatch (FTW) works to improve the productivity and accountability of Florida government. Its research recommends productivity enhancements and explains the statewide impact of fiscal and economic policies and practices on taxpayers and businesses. FTW is supported by its membership via voluntary, tax-deductible donations and private grants. Donations provide a solid, lasting foundation that has enabled FTW to bring about a more effective, responsive government that is more accountable to, and productive for, the taxpayers it has served since 1979. For more information, please visit https://floridataxwatch.org/.
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