On July 3, 2025, the 119th U.S. Congress passed H.R. 1: One Big Beautiful Bill Act (OBBBA), which was subsequently signed into law the following day by President Donald Trump. Contained in the OBBBA is a new federal tax credit scholarship program designed to support school choice initiatives and students with education-related expenses.
This program marks the first time the federal government would be effectively funding a nationwide private school choice program — should all states choose to participate. The program, funded through federal tax credits, also comes at a time when the federal government is imposing deep funding cuts in other areas.
This document addresses key questions about how the new program might work, who would be eligible, and what it could mean for Connecticut’s students, schools, communities, and residents.
Citation
School and State Finance Project. (2025). FAQs: Federal Tax Credit Scholarship Program in H.R. 1: One Big Beautiful Bill Act. Southington, CT: Author. Retrieved from https://files.schoolstatefinance.org/hubfs/Reports/Federal%20Tax%20Credit%20Scholarship%20Program%20FAQs.pdf.