Education Freedom Tax Credit Diverts Funds from Public to Private Schools
The Education Freedom Tax Credit (EFTC), part of the One Big Beautiful Bill Act passed in 2025, is set to allow parents, including those with high incomes, to send their children to private schools using federal tax credits. This initiative is expected to impact approximately 18 million school-aged children across the United States. The EFTC funds are sourced from donations that are reimbursed by federal tax credits, effectively diverting money that would have otherwise been paid to the federal government. Critics argue that this move will siphon funds away from public schools, which are already struggling with fixed costs and declining enrollments. The program is similar to existing state programs in North Carolina and Arizona, where a significant portion of the funds have been used by families who were already sending their children to private schools.