In what is expected to be a major financial boost for private, home and religious schooling across Alaska, Gov. Mike Dunleavy announced Aug. 20 that the State of Alaska is now accepting applications from nonprofit groups seeking approval as K–12 Scholarship Granting Organizations under the new federal Education Freedom Tax Credit.
Alaska’s participation in the first-ever nationwide federal tax credit scholarship program creates a dollar-for-dollar tax credit for Alaskans who donate to qualified scholarship-granting organizations (SGOs) – up to $1700 per year for individual contributions.
President Trump established the program through the Working Families Tax Cuts Act. Beginning January 1, 2027, individual taxpayers may contribute to an approved K–12 Scholarship Granting Organization, or SGO.
The SGO then awards scholarships to eligible K–12 Alaska students. A recent analysis estimates that 95% of Alaska’s K–12 students will be eligible to receive some portion of the donated funds. Depending on the student and the SGO, those scholarships may help cover tuition, tutoring, books, classroom supplies, career and technical education expenses, services for students with disabilities, and other qualified K–12 education expenses.
The program does not discriminate by educational model and may be used to support students in neighborhood public schools, charter schools, home schools, or private or religious schools.
“This is a tremendous opportunity for Alaska’s K–12 students, no matter where they go to school or how they learn,” Dunleavy said in a statement. “This program will bring new resources into education and give students better access to tutoring, books, specialized services, tuition assistance, and other opportunities. It also gives taxpayers in Alaska and across the country a powerful way to invest directly in Alaska’s children.”
The K–12 Scholarship Granting Organizations may take different forms. Some will partner with particular schools or groups of schools, helping their students apply for scholarships and bringing new scholarship dollars into those school communities. Others may work with education providers, serve a particular region or educational need, or accept applications from eligible K–12 students across Alaska regardless of where they attend school or receive their education. Federal law requires each SGO to award scholarships to at least 10 students who do not all attend the same school.
SGOs are nonprofit organizations and must devote at least 90% of their income to scholarships for eligible K–12 students. Although an individual taxpayer may claim a federal credit of up to $1,700, SGOs may pool contributions from many taxpayers. Individual scholarship awards may therefore be substantially greater than $1,700, depending on the SGO’s resources and scholarship program.
The next step is identifying the SGOs to which taxpayers in Alaska and across the country may make qualifying contributions.
Nonprofit organizations seeking inclusion on Alaska’s list of approved K-12 Scholarship Granting Organizations may apply by submitting a letter of interest and a copy of the organization’s IRS 501(c)(3) determination letter.
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The letter of interest must be signed by an authorized representative and attest that the organization meets, and will continue to meet, all applicable federal requirements.
Application materials should be emailed to SGO@alaska.gov.
Applications will be evaluated on a rolling basis. The state expects to approve its first group of K–12 SGOs by September 30, 2026.
Once approved, an SGO may rely on the state’s approval and begin organizing its K–12 scholarship program, building partnerships with Alaska schools and education providers, and preparing to raise qualifying contributions beginning January 1, 2027.
The K-12 program was originally introduced as the Educational Choice for Children Act (ECCA), then incorporated into President Trump’s Big Beautiful Bill Act by lawmakers. The goal is to expand school choice by incentivizing private donations to support educational expenses for families – all without directly appropriating government funds or creating traditional vouchers.
