The Education Freedom Tax Credit, also called the Federal Scholarship Tax Credit (FSTC), allows individuals and businesses to receive a dollar-for-dollar federal tax credit—up to $1,700—when donating to approved Scholarship Granting Organizations (SGOs). These funds will provide scholarships to help families pay for private school tuition, tutoring, educational therapies, and other services beginning in 2027.
In his announcement, Youngkin emphasized the program’s potential to help students with the greatest needs and praised former President Trump and U.S. Treasury Secretary Scott Bessent for their support of education choice. Eight SGOs, including two Virginia-based organizations—Step Up, Virginia! and the Torah Education Scholarship Fund—have been approved to serve local students.