Sanders announces Arkansas participation in new federal school choice tax credit

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Gov. Sarah Huckabee Sanders announced Thursday that Arkansas will participate in a new federal tax credit scholarship program for school choice created under President Donald Trump’s “One Big Beautiful Bill.”
The program allows individual taxpayers to claim a nonrefundable federal tax credit for cash contributions to Scholarship Granting Organizations that provide scholarships for elementary and secondary education expenses. The program will take effect Jan. 1, 2027, with individual taxpayers capped at $1,700 in credits per year.Sanders said the federal program builds on Arkansas’ existing school choice initiatives.”Arkansas is a national leader in school choice,” Sanders said in a statement. “Paired with the Education Freedom Account program established by Arkansas LEARNS, which more than 44,000 students already participate in, this federal scholarship ensures Arkansas families have more education options than ever before.”

Education Secretary Jacob Oliva said the federal effort reinforces policies already in place in the state.

“A national message of school choice affirms the mission Arkansas has already adopted,” Oliva said. “Through the high-interest EFA program, we are empowering parents and students with education freedom, and this federal scholarship helps families access the education best suited for their child’s needs.”

Sanders signed the Arkansas LEARNS Act into law in 2023, creating the Education Freedom Account program, which provides state funding assistance for families enrolling children in private, parochial or homeschool settings. Beginning with the 2025-2026 school year, the program expanded eligibility to all Arkansas families, with more than 44,000 students currently participating.

The LEARNS Act also included changes affecting public schools, raising the minimum starting salary for teachers from $36,000 to $50,000, creating merit-based bonuses, and making Arkansas one of four states offering teachers up to 12 weeks of paid maternity leave. The law also funded more than 120 literacy coaches statewide and established tutoring grants for students needing additional academic support.

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