Virginia has become the first state in the United States to formally opt into the Education Freedom Tax Credit, also referred to as the Federal Scholarship Tax Credit (FSTC). Governor Glenn Youngkin announced on January 9, 2026, that Virginia officially elected to participate in this new federal program as of January 1, 2026. The initiative is designed to encourage individuals and companies to donate funds that will provide scholarships for K–12 students, expanding school choice across the Commonwealth.
“Virginia is proud to lead the nation once again as the first state to opt in to the Education Freedom Tax Credit,” said Governor Glenn Youngkin. “This decision expands school choice for families across the Commonwealth by opening access to federally tax credit-funded scholarships, empowering parents and helping ensure students, especially those with the greatest needs, can choose the learning environment that is right for them. Thank you President Trump, Secretary Bessent, and our congressional leadership in the House and Senate for delivering school choice across America.”
United States Treasury Secretary Scott Bessent added: “Every child, no matter their zip code, deserves a great public, charter, or private school their parents choose for them. President Trump’s Working Families Tax Cuts delivered on this and the largest expansion of education freedom in history. I am pleased to support Governor Glenn Youngkin, who announced that Virginia has opted into the program. Virginians will join the many Americans who are excited about the Education Freedom Tax Credit and supportive of educational choice.”
Starting January 1, 2027, taxpayers participating in this program will be able to claim a nonrefundable federal tax credit of up to $1,700 per year for contributions made through approved Scholarship Granting Organizations (SGOs). These scholarships can be used for tuition at private schools or cover other educational expenses such as tutoring and therapies for students with disabilities. Public school families are also eligible if they wish to pursue additional services outside their assigned schools.
As part of its opt-in process, Governor Youngkin submitted a letter listing eight initial SGOs—two based in Virginia and six national organizations—that will serve Virginia students when the program begins in 2027. This list may change pending further federal guidance.
Secretary of Education Aimee R. Guidera commented: “We know that one-size-fits-all education doesn’t work. This is why Governor Youngkin has prioritized more quality options for families to choose from – whether it be by expanding access to college course through dual enrollment and CTE opportunities that lead to industry-recognized credentials, or our growing network of lab schools. Participation in the Education Freedom Tax Credit will make it possible for our families who don’t have the financial means to now have the ability to participate in tutoring and other enrichment programs with a fee through our public schools, as well as getting tuition assistance to attend a private school if that is the best place for their child. Virginia benefits when every student is in a learning environment in which they thrive.”
The administration says it will continue working with federal agencies on implementation details while collaborating with SGOs on compliance and transparency measures.
Since taking office, Governor Youngkin’s administration has introduced several initiatives aimed at broadening educational options within Virginia’s K-12 system. Efforts include establishing lab schools through partnerships between colleges and local divisions; restructuring charter and governor’s school processes; increasing flexibility around seat time and transportation; and making dual enrollment available statewide.
The Education Freedom Tax Credit program represents an additional step toward what officials describe as a more student-centered approach within Virginia’s education system.
Further information about state participation requirements is available from both the U.S. Department of Treasury and Internal Revenue Service.
