On July 3, 2025, the 119th U.S. Congress passed H.R. 1, commonly known as the One Big Beautiful Bill Act, which was subsequently signed into law the following day by President Donald Trump. Contained in H.R. 1 is a new federal scholarship tax credit program designed to support school choice initiatives and students with education-related expenses.
On October 1, 2026, the U.S. Department of the Treasury and the Internal Revenue Service issued proposed regulations to implement the program. The proposed regulations are not yet law and remain subject to change. They are open to public comment until December 1, 2026 and are scheduled to be discussed at a public hearing on December 15, 2026.
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. (2026). FAQs: Federal Scholarship Tax Credit Program. Southington, CT: Author. https://files.schoolstatefinance.org/hubfs/Reports/Federal%20Scholarship%20Tax%20Credit%20Program%20FAQs.pdf