U.S. Rep. Vince Fong (R-CA) wants California to opt into the Federal Tax Credit Scholarship Program, established under the enacted One Big Beautiful Bill Act to offer a nonrefundable tax credit of up to $1,700 for donations to nonprofit organizations that provide K–12 scholarships for students from low- and middle-income families.
“Education is the foundation of opportunity,” Rep. Fong said in a Jan. 29 statement. “I’m calling on Gov. Newsom to support real educational choice for California families so every child can succeed. California must say yes. It’s time to unlock opportunity for families and put parents first.”
States must opt in to participate and, beginning in 2027, they must certify a list of eligible Scholarship Granting Organizations (SGOs) to the U.S. Treasury Secretary by Jan. 1 of each year.
Qualifying SGOs as determined by federal guidelines may receive donations and administer student scholarships, consistent with eligibility and program standards established at the federal level, according to Rep. Fong.
“Under the program, scholarship recipients can use the funds for tuition, books, room and board, tutoring, special education services, uniforms, computers, and other approved education-related expenses that help families meet their children’s needs,” the congressman wrote in a Jan. 28 letter sent to Newsom urging the state’s participation in the program.
“By raising additional scholarship funds for students who face the greatest barriers to educational opportunities without imposing federal mandates on curriculum, school participation, or education policy, this tax credit directly addresses educational disparities and advances efforts to ensure all students have access to quality education,” Fong wrote.
Scholarships awarded under the program may be used across all educational settings including public, charter, private, religious, and homeschool options, and may cover a wide range of education-related expenses.
“By electing to participate, you would ensure this new federal education benefit will flow to California students, regardless of whether they attend a public or private school, and at no cost to the state,” wrote Fong.