In an effort to boost school choice options such as homeschooling, private education and other options, Gov. Mike Dunleavy has approved the state’s first 20 Scholarship Granting Organizations (SGO) under the Trump administration’s new federal Education Freedom Tax Credit Program.

The state received applications from organizations in Alaska and across the country. Each approved group has been verified as tax-exempt under Internal Revenue Code and has met Alaska’s application requirements.

“The Education Freedom Tax Credit presents a tremendous opportunity for Alaska’s children,” Dunleavy said on Oct. 2. “I’m pleased to approve this first round of 20 organizations so that Alaskan students can benefit from scholarship opportunities as soon as possible, and I look forward to additional scholarship granting organizations applying to help support the students of Alaska.”

All states that opt into the new program must include every qualifying organization located in the state that seeks inclusion as a scholarship granting organization. States may not pick and choose among eligible entities, impose requirements more restrictive than federal law, limit the types of schools participating students may attend, or restrict the qualified K–12 expenses scholarships may cover.

Donors can begin putting resources behind Alaska’s K–12 students. We are excited to see so many organizations stepping forward.

President Trump established the school choice program through the Working Families Tax Cuts Act. Beginning January 1, 2027, an individual taxpayer may choose to make a qualifying cash contribution to an approved SGO and receive a dollar-for-dollar federal income-tax credit of up to $1,700. A married couple filing jointly may receive a credit of up to $3,400.

Taxpayers across the country may contribute to an Alaska SGO and help Alaska students. Once the money is collected, individual scholarship granting entities may pool contributions from many taxpayers, meaning an individual student’s scholarship can be substantially larger than $1,700.

Depending on the student and the SGO, 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. Treasury estimates that approximately 95% of school-age children in participating states will satisfy the program’s income-eligibility requirement.

The program can support students in neighborhood public schools, charter schools, correspondence schools, private schools, religious schools, and other eligible educational settings. It will bring new private scholarship dollars into K–12 education, supplementing the substantial investment Alaska and its communities already make in public schools, while giving families more ways to meet the particular needs of their children.

“These organizations can begin building partnerships now.” Alaska Education Commissioner Deena Bishop explained. “Schools can identify needs. Families can learn about the scholarships that may be available. Donors can begin putting resources behind Alaska’s K–12 students. We are excited to see so many organizations stepping forward.”

The State approvals are effective immediately. Each approved SGO may rely on its approval as it begins organizing its scholarship program, working with Alaska schools and education providers, and raising charitable contributions.

Contributions made before January 1 will not qualify for the new federal tax credit, but they may qualify for a federal charitable-contribution deduction under existing law. Beginning January 1, qualifying contributions to SGOs may receive the new dollar-for-dollar credit.

Under federal law, SGOs must devote at least 90% of their income to scholarships for students.

Alaska will continue accepting and reviewing applications on a rolling basis. The state expects to submit its final 2027 SGO list to the IRS by Dec. 1. Organizations interested in applying may find additional information at: https://education.alaska.gov/sgo

Thus far, the following organizations have been approved for Alaska:

• AAA Scholarship Foundation

• ACE Alliance for Choice in Education

• AFC Scholarship Fund

• Alaska Students First

• American Catholic Education Fund

• Christian Education Network

• Federal Student Scholarship Organization, Inc.

• Friends of Spruce Tree Montessori

• Gifted & Talented Scholarships

• Head of Federal Scholarship Tax Credit

• Hometown Scholarships

• Jewish Education Fund of America

• Jewish Opportunity Fund

• K-12 Scholarship Foundation, Inc.

• Noble Arch Fund

• Orthodox Christian Scholarship Fund, doing business as Orthodox Christian Education Network (OCEN)

• Pay Your Tuition Foundation

• Renew Scholarships Alaska

• Scholarkids

• Student Athletic Scholarships

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