Ohio families with children in private schools, homeschools or public schools can apply for a new federal scholarship starting Jan. 1, 2027.

The state opted into what the Trump administration calls the first nationwide school choice program in U.S. history. The Federal Scholarship Tax Credit, signed into law by President Donald Trump as part of the One Big Beautiful Bill Act in July 2025, lets taxpayers donate to approved scholarship granting organizations (SGOs) and receive a dollar-for-dollar federal income tax credit. Individual donors can claim up to $1,700. Married couples filing jointly can claim up to $3,400, according to a Treasury Department press release.

For east-side families in Indian Hill, Madeira, Mariemont, Terrace Park and Sycamore Township, the program opens a new funding stream. Scholarship recipients can spend the money on private or religious school tuition, homeschooling costs, tutoring, special education therapies, books and computers, the Associated Press reported through WLWT, citing Treasury Department officials.

Public school students do not have to leave their district to benefit. They can use scholarship funds for supplemental expenses like tutoring or special education therapies.

Who qualifies

Children in elementary through high school whose families earn up to three times the area's median income are eligible. The Treasury Department estimates about 96% of children in participating states will qualify.

Families receiving government assistance through programs such as SNAP (food assistance), TANF (cash assistance) or Section 8 housing vouchers can use proof of that participation instead of income documentation. Foster children need no income verification at all.

Ohio is one of 30 states that have opted in for 2027, according to the IRS participating-states list published Sept. 14. Donors anywhere in the country can contribute to an SGO in any participating state and still receive the credit. Unused credits can be carried forward for up to five years.

When families can expect money

SGOs can begin accepting donations on Jan. 1, 2027. States must finalize their SGO rosters by Feb. 15, 2027. EdChoice, an Indianapolis-based school choice advocacy group, estimates scholarship money will realistically reach families by summer 2027 or the start of the 2027-2028 school year.

No Ohio-specific list of approved SGOs has been published yet. One Ohio-based organization, the Center for Christian Virtue's Christian Education Network SGO in Columbus, has already launched a national campaign to collect donations under the program.

Homeschool families: a caveat

Eligibility for homeschool students hinges on whether a state defines homeschools as "schools" under its law. Ohio requires homeschool families to register with the state, which analysts say should qualify Ohio homeschoolers. No Ohio-specific legal confirmation has been issued.

What critics say

An AP analysis found that in states where school choice scholarships are available to all students regardless of income, such as Florida and Arizona, the majority of recipients were already in private school or from affluent neighborhoods. Large scholarship programs in those states have also accelerated enrollment declines in public schools, the AP reported.

U.S. Secretary of Education Linda McMahon said the credit will ensure "every child has access to the education they need, not one limited by ZIP code, family income, or government‑imposed barriers."

What's next

The Treasury Department's proposed regulations are open for public comment for 60 days, with the window closing around Dec. 1. A public hearing on the proposed rules is scheduled for Dec. 15.