On July 4, 2025, President Trump signed the One Big Beautiful Bill (OBBB) into law—a sweeping $4.2 trillion tax-and-spending package. While the bill covers everything from energy to border security, one surprising inclusion has caught the attention of families across the country: a 100% federal tax credit for donations to Scholarship Granting Organizations (SGOs) that support K–12 education, including private schools and homeschoolers.

Under the new law, taxpayers can donate up to $1,700 per year to SGOs and receive a dollar-for-dollar federal tax credit—not just a deduction. This is essentially a way to redirect your tax dollars to educational options you support, without increasing your tax bill.

“This is a real game-changer,” said Adam Kissel, former Department of Education official in an interview with Fox News. “It’s a way for people to have a choice about where their money goes to help children—public, private, or homeschool.”
— Fox News

Here’s how it works:

• Taxpayers donate to an approved SGO.

• They get a full tax credit up to $1,700 for individuals (and higher limits for married couples or businesses).

• SGOs award scholarships to eligible K–12 students, which may cover tuition, books, tutoring, homeschool curriculum, and more—depending on the state.

Eligibility for scholarships is capped at 300% of the area median income, meaning middle-class families in many parts of the country could qualify.

States must opt in to the program for it to take effect locally, and SGOs are required to follow certain federal guidelines. Critics on the left are already crying foul.

“This will devastate public schools,” warned Randi Weingarten, president of the American Federation of Teachers, quoted in TIME Magazine. “It’s a deliberate siphoning of funds from public education to unregulated alternatives.”
— TIME

Supporters see it differently.

“This is about educational freedom,” said President Trump during the bill’s signing ceremony. “The money should follow the child—not be trapped in failing government schools.”
— Fox News

Some financial experts are also taking note of its broader impact.

“For high-income donors, this creates an opportunity to offset capital gains or other tax liabilities while supporting school choice,” said Kiplinger in its analysis.
— Kiplinger

Our Take: 

Whether this bill turns out to be a major win for homeschoolers—or just a symbolic shift—remains to be seen. On paper, it opens new doors: for the first time, the federal government is recognizing that families deserve help educating their children outside of the public school system.

That alone is a significant change.

But the details matter. States have to opt in. Scholarship Granting Organizations (SGOs) have to include homeschoolers in their programs. And the tax credit only helps those who have enough tax liability to benefit from it. For many homeschooling families—especially those living on a single income—this might not be the game-changer it could be.

And on top of that, we don’t love most programs that entangle homeschooling in new rules and regulations in return for tax dollars.

Still, the writing is on the wall. The public school system is no longer the default. From plummeting test scores to gender ideology in kindergarten classrooms, more and more parents are waking up and walking away.

The fact that this bill was signed on Independence Day is fitting: families are beginning to declare independence from a broken, one-size-fits-all system.

This law won’t solve everything. It may not even touch most homeschoolers. But it signals something bigger: the tide is turning. Educational freedom is gaining ground. Families are looking for something different, something better—and many are finding it right around the kitchen table, in the pages of Scripture, and in the daily discipleship that only homeschooling can offer.