Little Rock, Arkansas – Arkansas has officially announced its participation in President Donald J. Trump’s Federal Tax Credit Scholarship Program, expanding opportunities for school choice across the state. The announcement, made by Governor Sarah Huckabee Sanders, underscores Arkansas’ ongoing commitment to providing families with multiple education options while supporting innovative programs that empower parents to choose the learning environment best suited for their children.
“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,” Governor 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.”
The federal tax credit scholarship program, part of President Trump’s One Big Beautiful Bill, allows individual taxpayers in Arkansas to claim a nonrefundable federal tax credit for contributions to Scholarship Granting Organizations (SGOs). These organizations provide scholarships that cover elementary and secondary school expenses. Beginning January 1, 2027, individual taxpayers will be able to claim up to $1,700 in credits annually.
Secretary of Education Jacob Oliva highlighted the alignment of the federal initiative with Arkansas’ existing education programs. “A national message of school choice affirms the mission Arkansas has already adopted,” Oliva said. “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.”
Arkansas’ Education Freedom Account (EFA) program, launched under the Arkansas LEARNS Act signed by Governor Sanders in 2023, has become a cornerstone of the state’s school choice efforts. The EFA program assists parents seeking to enroll their children in private schools, parochial schools, or homeschool programs. In the 2025-2026 school year, EFAs were made available to every family in Arkansas, and more than 44,000 students are currently benefiting from the program.
Beyond expanding school choice, the LEARNS Act has introduced significant improvements to public education in the state. Teacher starting pay was raised from $36,000 to $50,000, elevating Arkansas from 48th in the nation to the top five states for starting salaries. The law also introduced merit-based bonuses for educators and extended paid maternity leave to up to 12 weeks, making Arkansas one of only four states nationwide to offer such benefits.
Additionally, the LEARNS Act deployed over 120 literacy coaches to public schools statewide and created tutoring assistance grants to support students needing extra academic help. These measures aim to strengthen public education while providing families the flexibility to pursue alternative schooling options through programs like the EFA and the new federal tax credit scholarship initiative.
The introduction of the federal tax credit scholarship program further enhances Arkansas’s leadership in school choice, giving families an unprecedented level of flexibility and control over their children’s education. By combining state initiatives like the EFA program with federal support, Arkansas aims to ensure that every child has access to a learning environment tailored to their individual needs, while continuing to improve outcomes in the public education system.
With the federal tax credit scholarships set to take effect in 2027, Arkansas families will have access to even more tools to shape the educational experience of their children. Officials say the combined efforts of state and federal programs reinforce the state’s commitment to innovation, opportunity, and education freedom, creating a model for other states to follow.
