At a recent event in Washington, D.C., a Treasury Department official offered a preview of forthcoming regulations governing the implementation of the new Education Freedom Tax Credit (EFTC), which goes into effect January 1, 2027.

Kevin Salinger, Deputy Assistant Secretary for Tax Policy, provided welcome answers to some of the questions advocates have had about the new law, which contains several ambiguities that are up to the Department to clarify.

• On the law’s requirement that SGOs spend “not less than 90 percent of the income of the organization on scholarships,” Treasury announced a "safe harbor" provision that will alleviate concerns some had over the ability of existing SGOs to participate. Treasury also reaffirmed its position that states will not be able to place additional requirements on participating SGOs beyond what is in the federal law.

• SGOs will be considered as being "located in a state" if they are authorized to do business in that state. Treasury also announced that there will be a variety of pathways for confirming income eligibility.

These updates came as good news to schools, families, and SGOs eager to participate in this new opportunity.

The U.S. Department of Education has announced a new interagency agreement with the Department of Health and Human Services for the management of federal special education programs. The Education Department already has an interagency agreement with the Department of Labor for management of Elementary and Secondary Education Act (ESEA) programs. Both agreements are part of the Administration's effort reduce the footprint of the Education Department.