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New Federal Tax Credit Could Expand School Choice Programs Like Louisiana's - American Press

MARION COUNTY, MISSISSIPPI, JUL 9 – The federal tax credit offers up to $1,700 annually for donations to scholarship organizations supporting families earning up to 300% of the area median income nationwide.

  • Congress passed a tax bill including a federal tax credit of up to $1,700 per year for donations to scholarship organizations, starting in 2026.
  • This new federal program, set to launch in 2027, aims to expand school choice by creating a parallel national system that states can opt into regardless of current infrastructure.
  • Louisiana, having operated a comparable scholarship program funded by private donations for over ten years, is well-equipped to engage with the new federal initiative, although its formal stance has yet to be announced.
  • Mississippi leaders including House Speaker Jason White and Gov. Tate Reeves express strong support, noting families earning up to $164,745 could qualify, while organizations must meet strict federal rules.
  • Proponents praise increased options and financial aid for families, but critics raise concerns about federal overreach and potential revenue losses, highlighting ongoing debates over education policy roles.
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Vermont Daily Chronicle broke the news in on Tuesday, July 8, 2025.
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