President Donald Trump has signed groundbreaking federal legislation that establishes the first-ever federal tax benefits for private education. The law, incorporated into the comprehensive funding package "One Big Beautiful Bill," provides a $1,700 tax credit for donors contributing to organizations that finance private education.
This legislation delivers substantial benefits to the Orthodox Jewish community throughout the United States. "This represents the largest federal educational program ever implemented," stated Nathan Diament, who serves as director of the Orthodox Union's advocacy center.
How it works
The legislation becomes effective in 2027 and enables donors to claim a 100% tax credit on contributions up to $1,700 to scholarship-granting organizations. These organizations will allocate funds to families for tuition expenses at private and religious institutions, including Jewish schools and yeshivas.
The strategic benefit lies in the fact that while donors cannot specify individual families, they can target their contributions to particular schools or school networks, enabling religious communities to bolster their educational institutions.
Transformative financial implications
Paul Bernstein, who leads the Jewish school support network "Prizma" as CEO, projects that the program will address "most scholarship requirements" for numerous Jewish schools nationwide. "We view this program as a pivotal catalyst for expanding Jewish education accessibility," he explained.
Although the law has been signed, the campaign continues. Multiple states must determine whether to implement the program, creating additional political mobilization opportunities. "The struggle extends beyond the law's enactment," explained Sidney Altfeld, director of the National Coalition for Education, "states must embrace the program, and we stand prepared to spearhead this initiative."
Public education advocates oppose the legislation, claiming it threatens public education funding and compromises church-state separation. Conversely, supporters maintain the law enables families to pursue religious education previously financially unattainable.
The legislation signifies a profound transformation in American federal education policy. Although over 20 states currently implement independent voucher programs or tax credits, this represents the federal government's inaugural offering of nationwide tax incentives for private education support.
