Skip to main content
Renew Scholarships
Students smiling together at a Christian school
EFTC News

Big News for Education Freedom Families: The EFTC Is Law — and States Are Choosing Sides

By Renew Scholarships

The Educational Choice for Children Act (ECCA) is law, and with it comes the federal Education Freedom Tax Credit (EFTC) — a dollar-for-dollar federal tax credit of up to $1,700 for donations to Scholarship Granting Organizations. Now the action has moved to the states, and governors and legislatures across the country are choosing sides. Here is where things stand — and what your family can do to be ready.

The headline: education freedom is now federal law

For decades, whether a family could afford a values-aligned education depended almost entirely on their zip code and their state’s politics. The ECCA changes that equation. It creates a nationwide framework in which private donors receive a federal tax credit for funding K–12 scholarships — and families use those scholarships for tuition and other eligible education expenses at schools aligned with their convictions.

Just as important is what the law does not do. Because the program runs on private donations administered by SGOs, participating schools are not treated as recipients of federal financial assistance — a legal firewall that protects their curriculum, creed, and admissions policies.

The catch: your state has to say yes

The federal framework only reaches your family if your state opts in — a formal notification from state leadership to the U.S. Treasury. That single provision has turned statehouses into the front line of education freedom, and the early results run the full spectrum.

Where the states stand

  1. February 19, 2026

    Idaho opts in by executive order

    Governor Brad Little formally notified the U.S. Treasury of Idaho's intent to participate — without drawing a dollar from the state's general fund or public school budget.

  2. February 19, 2026

    Kentucky files its opt-in bill

    Lawmakers in Frankfort introduced legislation to bring the Commonwealth into the federal framework, with scholarships possible in 2027 if it passes.

  3. February 2026

    Florida is in — and Illinois pushes back

    Governor Ron DeSantis announced Florida's participation for tax years ending after December 31, 2026. Meanwhile, Illinois floated a non-binding ballot question and bills aimed at blocking state cooperation.

  4. March 2026

    Colorado opts in; Vermont blocks

    Governor Polis opted Colorado in ahead of a 2027 launch, even as lawmakers debate HB 1292 oversight. Vermont's H.933 went the other way, explicitly declaring the state will not participate.

What this means for your family

If you live in a state that has opted in — like Florida, Idaho, or Colorado — your job now is preparation: organize your income documentation, talk with your school about partnering with an SGO, and watch for the IRS to finalize administrative procedures and credit limits.

If your state is still deciding — like Kentucky or Illinois — or has not acted at all, like Minnesota, your voice matters most right now. Respectfully contacting your governor and legislators is the single most effective step parents can take.

And if your state has moved to block participation, as Vermont has, take heart: legislative sessions end, senates reconsider, and no vote is ever the final word on your role as your child’s primary educator.

Three steps to take today

  • Pre-register. Join our listand we will alert you the moment the IRS opens the portal for contributions and applications — and whenever your state’s status changes.
  • Prepare your documents. The EFTC is needs-based. Having recent tax filings and proof of income ready means you can apply the day the window opens.
  • Bring your school along. Ask your Christian school or homeschool community whether they are ready to accept EFTC-funded scholarships.

Why we are hopeful

At Renew Scholarships, we believe God has entrusted parents — not the state — with the education of their children. The EFTC is big news precisely because it puts real resources behind that conviction, family by family and state by state. We will keep tracking every statehouse so you never miss the moment your door opens.

For educational use only. Not tax or legal advice. Details subject to pending IRS guidance and state approval.

Be ready

Be first in line when the portal opens

Pre-register today and we will alert you the instant EFTC contributions and applications open — plus every time your state's status changes.

Pre-Register Today Register Your School
Keep reading

More EFTC news & insights