Alabama Expands School Choice with Federal Education Freedom Tax Credit Program

January 16, 2026 - 19:58

MONTGOMERY – Governor Kay Ivey on Friday signed Executive Order No. 742, further enhancing school choice in Alabama by officially participating in the newly-established Federal Education Freedom Tax Credit program. This initiative aims to provide families with greater financial flexibility when it comes to choosing educational options for their children.

The Federal Education Freedom Tax Credit program is designed to empower parents by offering tax credits to individuals and businesses that contribute to scholarship funds. These funds can then be used to help cover tuition costs for students attending private schools, thereby expanding educational opportunities beyond traditional public schooling.

Governor Ivey emphasized the importance of this program in promoting educational excellence and ensuring that every child in Alabama has access to quality education. By participating in this federal initiative, the state aims to alleviate the financial burdens faced by families seeking alternative schooling options. This move is expected to foster a more competitive educational environment, ultimately benefiting students across the state.