Arkansas will participate in a federal tax credit scholarship program for school choice established by President Donald Trump’s One Big Beautiful Bill, Gov. Sarah Huckabee Sanders announced.
Beginning Jan. 1, 2027, individual taxpayers in Arkansas may claim a nonrefundable federal tax credit for cash contributions to Scholarship Granting Organizations that provide scholarships for elementary and secondary education expenses. Individual taxpayers are limited to $1,700 in credits annually.
“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,” Sanders said. “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 said the federal program aligns with the state’s existing efforts.
“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,” Oliva said.
In 2023, Sanders signed Arkansas LEARNS, which established the Education Freedom Account program providing assistance to parents seeking to enroll their children in private, parochial or homeschooling. In the 2025-2026 school year, EFAs became available to every family in Arkansas. More than 44,000 students currently participate in the program.
The LEARNS Act also raised public school teacher starting pay from $36,000 to $50,000, established merit bonuses for teachers and made Arkansas one of four states offering teachers up to 12 weeks of paid maternity leave. The state also deployed more than 120 literacy coaches to public schools and established tutoring assistance grants for struggling students.