Photo: Rabbi A.D. Motzen, National Director of Government Affairs for Agudath Israel of America, with Kevin Salinger (L) Deputy Assistant Secretary for Tax Policy at the Department of the Treasury, and Greg Dolan, Senior Advisor at the Department of Education, at today’s briefing.

The U.S. Department of the Treasury has released a preview of guidance for the implementation the new federal scholarship tax credit, also known as the Education Freedom Tax Credit (EFTC), a landmark program set to take effect in 2027.

The EFTC allows individual taxpayers to contribute to a nonprofit scholarship granting organization (SGO) and receive a dollar-for-dollar tax credit worth up to $1700. The SGO then pools the funds and distributes scholarships to eligible students for a wide range of K-12 educational expenses including private school tuition. Click here for more details on the guidance preview.

Agudath Israel leadership participated in an unprecedented, invitation only Treasury Department briefing yesterday where officials previewed the forthcoming guidance and hosted a panel of education leaders. Agudath Israel and its coalition partners are hoping that the additional clarity will help the remaining states opt in and allow SGOs, schools, and families sufficient time to prepare before the program launches in January 2027.

For more details on the guidance preview, click here.