On February 16, Governor Brad Little signed Executive Order 2026-03 formally declaring Idaho’s intent to opt in to the new federal scholarship tax credit program created under the One Big Beautiful Bill Act. The positions Idaho families to benefit from what federal officials describe as the largest national expansion of education freedom in history.

The federal Education Freedom Tax Credit allows taxpayers to receive a dollar-for-dollar federal tax credit of up to $1,700 for contributions made to qualified Scholarship Granting Organizations (SGOs). Those SGOs then provide scholarships to eligible K–12 public and private school students. Funds will be used to support a broad range of qualified education expenses, including tuition, tutoring, technology, and services for students with disabilities.

States must formally opt in to participate, and Idaho initially declared its intent on January 20, 2026. Governor Little’s executive order now directs the Idaho State Department of Education to prepare for implementation so families can begin benefiting when the program becomes available for taxable years beginning January 1, 2027.

Along with the new executive order, HB 731 was also introduced this week by Rep. Pickett. That bill directs the state education department to “certify its authority to the U.S. Secretary of the Treasury and maintain an annual published list of qualified scholarship-granting organizations located within Idaho.”

The groundwork is now underway. Scholarship organizations can seek qualification, donors can prepare to contribute, and families will soon have expanded access to scholarship support.

Specific responsibilities for the Idaho State Department of Education include annually notifying the U.S. Secretary of the Treasury of participation and publishing a list of qualified scholarship-granting organizations operating in Idaho. The state department must also accept applications from SGOs throughout the year, certify its authority to submit the list to the federal government, and comply with federal guidance to ensure Idaho remains eligible to participate.

Participation in the federal scholarship tax credit program does not create a new state tax or impose additional burdens on Idaho taxpayers. As noted in the Governor’s recent press release, the program expands educational opportunities “without placing any additional burden on taxpayers.”

Instead, it allows private contributions to generate scholarships that provide students with supplementary educational support.

Superintendent of Public Instruction Debbie Critchfield called opting in “a chance to give Idahoans more -more support, more resources, and more options – without taking away from what we already have”

For Idaho families, the executive order represents preparation and opportunity.

By opting into the federal scholarship tax credit program, Idaho continues to reinforce its commitment to education freedom and parental choice, ensuring families have greater access to resources that help tailor education to each child’s unique needs.

Meg Goudy is Director of the Bill & Milly Kay Baldwin Center for Education at the Mountain States Policy Center, an independent research organization based in Idaho, Montana, Eastern Washington and Wyoming.