Continuing the American tradition

"Americans of all ages, of all conditions, of all minds, constantly unite. Not only do they have commercial and industrial associations in which they all take part, but also they have a thousand other kinds:” religious, moral, serious ones, useless ones, very general and very particular ones, immense and very small ones; Americans associate to celebrate holidays, establish seminaries, build inns, erect churches, distribute books, send missionaries to the Antipodes; in this way they create hospitals, prisons, schools. If, finally, it is a matter of bringing a truth to light or of developing a sentiment with the support of a good example, they associate. Wherever, at the head of a new undertaking, you see in France the government, and in England, a great lord, count on seeing in the United States, an association. " 

In that spirit, the new Federal Education Tax Credit allows citizens, not government, not oligarchs to build institutions that fund students in their programs of choice. On October 1st, 2026, the US Department of Treasury released temporary regulations and proposed permanent regulations to govern the new Federal Education Tax Credit program.  

The regulations make it clear that once a state’s Governor opts in, the state’s main task is publishing the list of Scholarship Granting Organizations (SGOs), not to further constrain and regulate the education choice marketplace.  

There are three main groups that bear responsibility for implementation of the program: 

Governor 

The Governor’s Office has the task of following the procedural steps and opting into the program. Once the state has officially opted in, the Governor or his designee must annually publish the list of SGOs. But the responsibility doesn’t stop with bureaucratic box-checking.  

Our current Governor, as well as our next Governor should be active champions for the program, investing time and messaging into promoting the program to parents, donors and individuals wishing to create their own SGOs. 

Donors 

Donors should begin researching Scholarship Granting Organizations to determine which organization best fits your values and interests. Some SGOs may be more focused on private schools, others on public school students, and others on high poverty students. Whatever your priority as a donor, choose a SGO that aligns with your values and preferences, and, if that organization does not yet exist, create one of your own! 

Parents 

Parents need only to sign up for scholarships and let their friends and family know to donate to an SGO! 

More freedom, less bureaucracy 

The tax credit law, which was passed as part of the One Big Beautiful Bill (OBBA) and subsequent regulations from the Department of Treasury place ultimate decision-making power in the hands of parents, donors, and associations, not politicians and bureaucrats.  

As South Carolina continues to expand its school choice options, our elected officials should consider the federal approach as we decide the appropriate guardrails for our programs.  If state government heavily regulates the education choice market, the outcome is a constrained, highly-regulated system that mirrors the public education system – at that point, parents have choice in name only.  

When considering education regulations, particularly for choice programs and charter schools, policymakers should continue to prioritize the sector’s flexibility and ability to innovate. For once, the Federal Government’s work is showing us the way towards a system that serves students and families without bureaucratic box-checking. 

The Education Freedom Tax Credit capitalizes on America's founding strengths, - our citizens’ ability to form voluntary, mediating associations, our predilection for charity, and our ability to innovate and build outside the default government-mandated system.