The new federal Education Freedom Tax Credit will soon allow parents, including parents earning $500,000 a year or more, to send their children to private schools at public expense. In fact, many of them already send their children to private schools, and they will now be reimbursed by federal tax dollars.
According to the Department of Education, students “from a household with income not greater than 300% of the area’s median gross income qualify.” The EFTC, part of the One Big Beautiful Bill Act passed in 2025, defines “area” as any county, including those with median incomes upwards of $200,000. This encompasses an estimated 18 million school-aged children. EFTC funds will come from donations repaid in full by federal tax credits — money that would have been paid to the federal government in taxes but will now be diverted.
