National School Choice Signed into Law by President Trump

On Independence Day, President Donald Trump signed the “One Big Beautiful Bill” which permanently enshrines the nation’s first federal scholarship tax credit into law. This new provision will enable eligible students to receive K-12 scholarships to attend the yeshivah or school of their choice.

Beginning in 2027, donors in all 50 states will be able to receive a dollar-for-dollar tax credit for contributing to scholarship organizations. These nonprofits will then use the donations to provide K-12 scholarships to students from families earning 300% or less of the median income of that area. There is no annual cap on the overall amount raised, but the maximum contribution amount is $1,700 per taxpayer. Agudath Israel has been at the forefront of the advocacy effort to expand school choice on the state and federal levels for decades.

“By signing this historic tax credit into law President Trump brought the country one giant step closer to his stated goal of universal school choice,“ said Rabbi A.D. Motzen, Agudath Israel of America’s national director of government affairs. “This new federal scholarship tax credit will allow taxpayers in all 50 states to generate K-12 scholarships that empower parents and students.”

Rabbi Yossie Charner, Agudath Israel’s Director of Congressional Affairs added, “Agudath Israel thanks the many Congressional supporters who championed this issue on behalf of parents across the country.”

“Agudah will continue its school choice advocacy on the state and federal levels,” said Rabbi Avi Schnall, Agudath Israel’s director of federal education affairs. “We will work to ensure that all states participate and enable their families to benefit from this new scholarship whether they attend public, private, or religious schools.”