By SPEAKIN’ OUT NEWS
Gov. Kay Ivey has taken another step to expand school choice in Alabama, signing an executive order committing the state to participate in a new federal education tax credit program aimed at increasing scholarship opportunities for families.
Ivey on Friday signed Executive Order No. 742, confirming Alabama’s participation in the Federal Education Freedom Tax Credit program, also known as the Federal Scholarship Tax Credit. The action comes days after her State of the State address and ahead of National School Choice Week, which begins Jan. 25.
“For over a decade, Alabama has been a trailblazer in offering parents and students options to access and afford the best quality education,” Ivey said in a statement. “Soon our families will have even more resources.”
The federal tax credit program was created through the One Big Beautiful Bill Act, signed by President Donald Trump last July. The program provides federal tax credits for donations made to approved scholarship-granting organizations, which then award scholarships to eligible K-12 students.
According to Ivey’s office, scholarship funds may be used for tuition, books, fees, tutoring, supplies and special needs services at public, private and religious schools. Families already participating in Alabama’s CHOOSE Act or the Alabama Accountability Act may also qualify for the federal program.
Alabama’s Accountability Act, passed in 2013, allows eligible students to receive scholarships to attend higher-performing schools. In 2023, Ivey signed the CHOOSE Act, establishing refundable state income tax credits for qualifying education expenses, including tuition and textbooks.
By signing the executive order, Ivey authorized the Alabama Department of Revenue to administer the federal program and certify eligible scholarship organizations statewide.
State officials said the program builds on Alabama’s existing scholarship framework while offering taxpayers another way to support education access.
The Federal Education Freedom Tax Credit program is scheduled to take effect in January 2027.