California has not yet indicated whether it will participate in the federal Education Freedom Tax Credit. Nevertheless, CAPSO is proactively preparing for the possibility so that our member organizations and schools are positioned to respond thoughtfully should the opportunity become available.

 

CAPSO is beginning a series of informational webinars and developing supportive materials to help members understand the program, evaluate potential opportunities and risks, and prepare for possible implementation. Our goal is to ensure that CAPSO member schools are equipped with the knowledge and protective guidance necessary to pursue strategic and fully informed participation should California choose to "opt-in."

 

The first webinar is designed specifically for CAPSO member organization leaders and will focus on establishing and working with Scholarship Granting Organizations (SGOs), including anticipated regulatory considerations based on the guidance previewed by the U.S. Department of the Treasury in late June. Member organization leaders have received invitations directly. If you believe you should have received an invitation but did not, please contact the CAPSO office.

 

View the Treasury Press Release & Preview Remarks here

 

AFPI Releases EFTC Funding Loss Calculator

The America First Policy Institute has created a funding loss calculator to demonstrate how much money states will be missing out on if they decline to participate in the EFTC. According to AFPI, "the 23 states currently not participating are projected to forego nearly $23 billion in charitable educational donations between 2027 and 2029, resulting in more than 4.1 million lost scholarship opportunities." 

 

According to the calculator, California's three-year funding loss projection is $4.91B. 

 

Access the Funding Loss Calculator here

 

 

New Estimates Highlight the Potential Reach of the EFTC

A new analysis from the American Federation for Children estimates that nearly 52 million K–12 students nationwide—approximately 92% of school-age children—could meet the income eligibility requirements for Education Freedom Tax Credit scholarships beginning in 2027. In California, the analysis projects that approximately 5.9 million students, or 92.4% of the state’s K–12 population, could be eligible.

These estimates demonstrate the potentially significant reach of the program; however, access remains dependent upon each state’s decision to participate. California has not yet opted in or indicated whether it will do so. 

 

Read the full analysis from the American Federation for Children here