Private schools are likely to be the beneficiaries of new federal school voucher program

This week, the Treasury Department released rules for a new nationwide school choice program that could end up providing billions of dollars to students attending private schools.

Taxpayers will be able to opt in to the program by giving up to $1,700 to third-party groups that provide scholarships to students. They can later deduct that donation from their taxes.

“As a donor, you basically get a sort of dollar-for-dollar rebate of your $1,700 donation come tax time,” said Kristin Blagg, a principal research associate with the Urban Institute.

In participating states, most elementary and secondary students are eligible.

“This program has a pretty wide eligibility criteria, up to 300% of area median income,” Blagg said. “That is typically well north of the six-figure mark for a household.”

Many public school advocates oppose the program, saying it’s public schools that need taxpayer support — not private ones.

The new program is designed to benefit some public school students with scholarships for tutoring, technology, and after-school programs. But Jon Valant, a senior fellow in governance studies at Brookings, is skeptical.

“I think disproportionately people are going to raise money to pay for private school tuition, because it's private school tuition that is the really big educational expense that families have,” he said.

The government is planning to launch the education tax credit in January 2027.