August 04, 2026 01:40 AM

Up to 52 million US students could benefit from ‘Freedom’ scholarships

Monday, August 3, 2026

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Around 52 million students attending public, private and charter schools across the United States could potentially qualify for a new federal “Freedom” scholarship program. More than 2.7 million students in New York State alone could be eligible.

The program, known as the Education Freedom Tax Credit, is expected to begin next year and would provide financial assistance for education-related expenses.

According to an analysis by the American Federation for Children (AFC), 31 states have already opted into the program, covering about 31 million students. Several other states have yet to participate, including California, where nearly 6 million students could potentially benefit.

Under the program, students at private schools could use scholarship funds to help cover tuition costs. Public-school students could potentially use the assistance for expenses such as tutoring, after-school activities and transportation.

State governors must approve participation before students in their states can access the program.

The initiative has faced opposition from teachers’ unions, which argue that the tax-credit system could encourage students to leave public schools and effectively promote private-school vouchers.

The program was established under a Republican-backed budget law approved by President Donald Trump last year. Under its rules, individuals who donate to qualifying nonprofit scholarship organizations can receive a federal tax credit of up to $1,700 annually. The organizations would then distribute the funds as financial assistance to eligible students.

The AFC estimates that children from families earning up to 300% of an area’s median income could qualify, potentially making around 90% of students eligible for some form of assistance.

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