Virginia Urged to Embrace Federal Scholarship Tax Credit Program

Former Virginia Board of Education President Chris Braunlich argues the program can provide millions in education funding without costing taxpayers.

Feb. 4, 2026 at 6:23pm

Got story updates? Submit your updates here. ›

The new Federal Scholarship Tax Credit (FSTC) program, set to launch in 2027, will allow taxpayers to receive a federal tax credit of up to $1,700 for donations to scholarship granting organizations that offer scholarships to public and private school students. While former Virginia Governor Glenn Youngkin opted for the state to participate, the Virginia Education Association has voiced opposition, arguing it would divert funds from public schools. However, education advocates like former Obama Secretary of Education Arne Duncan and Colorado Governor Jared Polis have endorsed the program, noting it can generate over $700 million annually for Virginia students without impacting state education budgets.

Why it matters

The FSTC program represents a potential opportunity to significantly expand educational resources and services for Virginia students, including those in underserved communities, without requiring additional state funding. However, opposition from teachers' unions and concerns about private school scholarships have created political obstacles to participation.

The details

The FSTC program, starting in 2027, will allow taxpayers to receive a federal tax credit of up to $1,700 for donations to scholarship granting organizations (SGOs) that provide scholarships to public and private school students. These scholarships can be used for a variety of education-related expenses. A new analysis estimates that 30% taxpayer participation could generate over $731 million annually for Virginia students. While former Governor Youngkin opted for Virginia to participate, the state teachers' union has voiced opposition, arguing against private school scholarships. However, education reform advocates like Arne Duncan and Jared Polis have endorsed the program, noting it can expand resources like tutoring and special services without impacting state education budgets.

  • The FSTC program is set to launch in 2027.

The players

Chris Braunlich

Former president of the Virginia State Board of Education, senior advisor and former president of the Thomas Jefferson Institute for Public Policy, and volunteer chairman of a scholarship granting organization.

Arne Duncan

Former Obama administration Secretary of Education.

Jared Polis

Democratic Governor of Colorado.

Glenn Youngkin

Former Governor of Virginia who opted for the state to participate in the FSTC program.

Virginia Education Association

The state teachers' union that has voiced opposition to the FSTC program.

Got photos? Submit your photos here. ›

What they’re saying

“Opting in doesn't take a single dollar from state education budgets. It simply opens the door to new, private donations, at no cost to taxpayers, that can support students in public and nonpublic settings alike.”

— Arne Duncan, Former Obama Secretary of Education

“The highly-touted private school scholarship piece that Republicans like to talk about is just a teeny little tip of the iceberg on this....the much broader benefit to many Colorado families will be after-school activities, and learning for kids that are in public school, summer school activities, tutoring – so many areas that kids and families will benefit from.”

— Jared Polis, Governor of Colorado

What’s next

The new Virginia Governor, Abigail Spanberger, will need to decide whether to continue the state's participation in the FSTC program or attempt to block it, which could slow down implementation.

The takeaway

The FSTC program represents a potential opportunity to significantly expand educational resources and services for Virginia students, including those in underserved communities, without requiring additional state funding. However, political opposition from teachers' unions will need to be overcome for the state to fully embrace and benefit from the program.