There’s a New Federal K-12 Scholarship. What PA Parents Need to Know

Our family has done education in just about every configuration available.

We’ve traditionally homeschooled. We’ve used cyber charter school. We’ve used brick-and-mortar school. We’ve had kids who absolutely thrived in one setting and kids who needed something entirely different.

If raising five very different children has taught me anything, it’s that there is no single educational setting that magically works for every kid.

So when something comes along that could give families more flexibility to build an education around the actual child standing in front of them, I pay attention.

And this week, the Federal Scholarship Tax Credit got my attention.

Not because Pennsylvania families can suddenly sign up for $1,700 in free homeschool curriculum. I checked.

They cannot.

But there is a potentially significant new source of K-12 scholarship money coming in 2027, and if Pennsylvania chooses to participate, it could eventually help eligible families with qualifying education expenses.

There are, however, several rather important asterisks between “new federal scholarship program” and “somebody please fund my curriculum cart.”

Photo credit: Courtesy of Rachael Benion

First: nobody is handing parents a $1,700 tax credit

This is probably the most important part to understand.

The new Federal Scholarship Tax Credit, also called the Education Freedom Tax Credit, creates a federal tax credit for people who donate money to approved Scholarship Granting Organizations, or SGOs.

Beginning in 2027, an eligible individual taxpayer may claim a nonrefundable federal income tax credit of up to $1,700 for qualifying cash contributions. Under the proposed regulations released October 1, married couples filing jointly may claim a combined credit of up to $3,400 for qualifying contributions.

The Scholarship Granting Organizations then use qualifying funds to provide scholarships to eligible K-12 students.

Where it gets interesting for families

The scholarship money itself could be used more broadly than I initially expected.

According to Treasury and the IRS, qualifying scholarships may cover expenses including private-school tuition, academic tutoring, special-needs services, books, supplies, computers and other equipment, along with other qualifying elementary and secondary education expenses.

Treasury and the IRS estimate that approximately 96% of children in participating states would meet the proposed income eligibility rules or safe harbors. That does not mean 96% of children will receive scholarships. Available scholarship money will depend on donations, participating SGOs and the scholarship programs those organizations operate.

Photo credit: Courtesy of Rachael Benion

So... is somebody giving me $1,700 for homeschool curriculum?

No. I checked.

This is the part I am watching especially closely.

The proposed federal rules tie qualifying elementary and secondary education expenses to a student’s enrollment or attendance at a K-12 school as defined under applicable state law, and Treasury and the IRS say additional guidance on qualified expenses and schools is still coming.

So I would not start mentally spending scholarship money on next year’s homeschool curriculum just yet.

For our family, though, this is exactly why the program is worth following. Educational flexibility is not theoretical to us. We have moved between homeschooling, charter schooling and brick-and-mortar education because children change, circumstances change and what works beautifully for one child can be completely wrong for another.

Sometimes the right answer is a classroom. Sometimes it’s learning at the kitchen table. Sometimes it’s a cyber program with outside classes layered around it. Sometimes a child needs tutoring, specialized instruction or an entirely different environment before learning can really click.

More options do not guarantee the right fit. They do give parents more tools for finding it.

Now for the very Pennsylvania-sized catch

Pennsylvania is not currently participating.

The program is voluntary for states. A state or the District of Columbia must elect to participate and provide the IRS with a list of qualifying SGOs before taxpayers can make qualifying donations to an SGO in that state and claim the federal credit.

As of the IRS list updated September 14, 2026, 30 states had made an advance election for 2027. Pennsylvania was not among them.

That does not necessarily mean Pennsylvania is out for 2027. The IRS says states that have not yet made an advance election may still elect to participate. It does mean that, as I write this, Pennsylvania parents should not assume these scholarships will be available here.

The federal regulations are still proposed, Pennsylvania has not yet elected to participate, and qualifying Pennsylvania Scholarship Granting Organizations have not been established through this federal process.

For now, this is a “know what it is and keep watching” story.

If Pennsylvania does participate, then we get to the questions that matter much more around my kitchen table: Which organizations will offer scholarships? Who qualifies for which programs? What expenses will actually be covered? How will homeschool and cyber-school families fit into the final rules? How much scholarship money will be available? And how do families apply?

Those are the questions I’ll be following.

Because after educating five different kids in multiple different ways, I am fairly convinced of one thing: the most useful education system is one with enough doors that families can keep looking until they find the one their child can actually walk through.

And if Pennsylvania decides to open another one, I want local parents to know exactly where it leads.