State governors may officially opt in to participate in the federal school choice provision as of the start of this year. As the AACS has reported, the One Big Beautiful Bill passed last summer included a provision allowing a $1,700 dollar-for-dollar non-refundable tax credit for taxpayers who donate to a scholarship-granting organization (SGO).

These SGOs bundle donations and provide scholarships to students for eligible expenses, such as private school tuition. However, scholarships may be distributed only in states where the governor opts the state into the provision. Although taxpayers will receive the credit starting in 2027, the Treasury Department released a form allowing governors to opt in for “Advance Election” starting January 1, 2026.

The early opt in will allow outgoing governors favorable to school choice, such as Virginia Gov. Glenn Youngkin, to opt their states in before governors opposed to school choice, such as Virginia Governor-elect Abigail Spanberger, take office. Because regulations for the provision are still being crafted, it is unclear how a state that has opted in can opt out. The early opt in also does not yet require governors to submit a list of eligible SGOs, a requirement in the law. So far, the governors of Colorado, Iowa, Louisiana, Nebraska, South Dakota, Tennessee, and Texas have indicated they intend to opt in. The governors of New Mexico, Oregon, and Wisconsin have said they will refuse to opt in. North Carolina may participate depending on the regulations.

The AACS continues to represent its schools by participating in the regulatory process and will continue to share details as the provision is implemented.