The Trump administration released rules Thursday, Oct. 1, for a federal tax credit intended to support education expenses, setting up a decision for governors on whether their states will take part in the program. The Treasury Department’s “Education Freedom Tax Credit” offers donors to eligible education-focused nonprofits a dollar-for-dollar federal tax credit of up to $1,700 a year. Married couples filing jointly could claim as much as $3,400. The program was created in a 2025 Republican tax and domestic policy law and is scheduled to begin in 2027. Potential expenses include private-school tuition, tutoring and special education services. Treasury said it plans to issue additional guidance on which costs qualify after receiving requests for clarification. The rules intensify a longstanding national dispute over school choice. Supporters have sought a federal scholarship tax credit for years, while opponents—including teachers unions and civil rights groups—have raised concerns about effects on public schools. The range of possible uses, particularly private-school tuition, is likely to keep questions about who benefits and how the policy affects public education at the center of state-level decisions. Governors in states considering participation will face pressure from both supporters and critics. The rules announced Thursday lay out the federal tax-credit framework, but further Treasury guidance is still expected to clarify eligible expenses.