Little Rock, Arkansas – In a move aimed at expanding education options for families across the state, Governor Sarah Huckabee Sanders announced that Arkansas will participate in the federal tax credit scholarship program created by President Donald J. Trump’s One Big Beautiful Bill. This federal initiative offers tax incentives to support school choice through contributions to Scholarship Granting Organizations, marking another major step in Arkansas’s ongoing efforts to lead the country in educational reform.
Federal Tax Credit Program Aligns with Statewide Education Freedom Efforts
Beginning January 1, 2027, individual taxpayers in Arkansas will be eligible to claim a nonrefundable federal tax credit for cash donations to Scholarship Granting Organizations, which offer scholarships covering elementary and secondary education expenses. The credit is capped at $1,700 per year per taxpayer.
“Arkansas is a national leader in school choice and I’m excited to see that with President Trump back in office, he’s taking the education freedom movement nationwide,” said Governor Sanders. “Paired with the EFA program established by Arkansas LEARNS, which more than 44,000 students already participate in, this federal scholarship makes sure that Arkansas families have more education options than ever before.”
Secretary of Education Jacob Oliva echoed the Governor’s enthusiasm, stating, “A national message of school choice affirms the mission Arkansas has already adopted. Through the high-interest EFA program, we are actively empowering parents and students with education freedom, and this federal scholarship ensures families can access the education best suited for their child’s needs.”
LEARNS Act Already Reshaped Arkansas’s Education System
The federal tax credit program comes as an expansion of the education reforms already implemented under Governor Sanders’ Arkansas LEARNS Act, signed into law in 2023. Among its many provisions, the LEARNS Act launched the Education Freedom Account (EFA) program, which provides financial assistance to parents choosing private, parochial, or homeschooling paths for their children. As of the 2025-2026 school year, the EFA program became available to every family in Arkansas, with over 44,000 students currently enrolled.
The LEARNS Act also delivered significant benefits to public school educators by increasing starting teacher pay from $36,000 to $50,000, lifting Arkansas from 48th in the nation to the top 5. Additional provisions included merit-based teacher bonuses, up to 12 weeks of paid maternity leave, 120 literacy coaches deployed across the state, and tutoring grants for struggling students.
The addition of the new federal tax credit program reinforces Arkansas’s commitment to what leaders call “education freedom,” providing even more choices to families seeking the best fit for their children’s academic needs.
