U.S. Sen. Bill Cassidy (R-LA) and U.S. Rep. Adrian Smith (R-NE) joined several other Republicans in urging states to opt-in now to the upcoming federal school choice scholarship tax credit.
In July, Sen. Cassidy’s Educational Choice for Children Act (ECCA) of 2025, S. 292, became law as part of the enacted One Big Beautiful Bill Act to authorize the new program, which the lawmakers wrote in an Oct. 14 letter sent to governors will “unlock billions of private dollars to fund scholarships for K-12 students across the country.”
“By participating,” wrote Sen. Cassidy, Rep. Smith, and their colleagues, “you can give countless students the chance to pursue the education they deserve — without any new state spending and without new mandates or added bureaucracy.”
Specifically, the federal legislation enacted into law includes a provision modeled after the ECCA that establishes a new, permanent, dollar-for-dollar federal tax credit of up to $1,700 for individuals who make donations to non-profit Scholarship Granting Organizations (SGOs).
The SGOs then distribute scholarships to K-12 students to cover expenses such as tuition, school supplies, special needs services, tutoring, and transportation, they wrote.
“Importantly, this tax credit complements existing state-level education programs. It will not impact federal or state education funding or diminish public schools,” wrote the five lawmakers. “Instead, it gives families more options — whether in public or private, religious or non-religious settings — and allows students to either pursue new opportunities or enrich their current education.”
They urged the governors “to act quickly,” ensuring students can benefit from the tax credit and dollars donated to each state remain in that state.
To participate, according to their letters, states must submit a list of eligible SGOs operating within the state to the U.S. Secretary of the Treasury by Jan. 1 each year.
“While the tax credit officially launches on Jan. 1, 2027, it is important for states to opt-in early to provide certainty to students and SGOs,” the lawmakers wrote.