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The Federal Voucher Tax Credit is Coming to the South: Engagement Opportunities for Advocates Prior to Regulations

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Last Updated: June 15, 2026

As the country awaits federal rulemaking from the U.S. Department of Treasury (Treasury) that will provide guidance to the federal voucher tax credit (FVTC) program, many Southern governors have already opted in. Major decisions, including where funds flow and who can access them, could threaten education equity. There is also opportunity for advocates to intervene and engage with the FVTC program in their state.

Engagement Opportunities for Advocates Prior to Regulations

As the country awaits guidance, advocates can start mobilizing to ensure fair funding. Below are a few practical actions for advocates.

  • Advocates should familiarize themselves with the voucher landscape in their states. This knowledge will better position advocates to defend against program expansion, uplift communities experiencing harm, and engage on guardrails.
  • Advocates should identify and amplify key aspects of the regulations to watch:
    • Accountability for student outcomes. Understanding the impact of the FVTC on student outcomes means annual public data disaggregated by student and scholarship granting organization (SGO) characteristics. 
    • Public reporting on student participation. States need transparency by requiring reporting on how the FVTC is being used by students, particularly those with greatest need.
    • Strong fiscal oversight & transparency. States should protect public funds from flowing into financially risky SGOs, schools, and providers by implementing robust state fiscal oversight.
  • Advocates should develop or strengthen relationships with key players connected to FVTC implementation in their state. Consider how to connect and amplify the voices of those most likely to be left behind or harmed through this legislation, such as rural students and students with disabilities. 

Agencies, policymakers, schools, and individuals all have different roles related to the FVTC. Their actions could improve equity and mitigate harm as implementation begins. 

See Figure 1 below for examples of how key actors can leverage their role to increase equity.

Figure 1: Equity Levers for Key Actors
Key Actor Role To Increase Equity, This Actor Could…
Treasury Federal Manager Require private schools and providers receiving FVTC funds to report on student outcomes–similar to requirements for public schools receiving federal funds.
U.S. Department of Education (USED) Education Oversight Continue administering and overseeing essential programs such  as IDEA and Title I while upholding robust civil rights protections for public school students
Governors Opt-in/Opt-out power Exercise authority to opt out each year if possible. Otherwise, veto legislation that would increase inequities in the program.
State Legislatures State lawmakers Require that at least one SGO is solely committed to funding public school services.
State education agencies (SEAs) Program managers Collect and publish annual SGO fiscal data, a list of programs serving FVTC-funded scholarships, and a detailed list of purchases and associated costs using FVTC funds.
SGOs Scholarship providers Go beyond minimum program requirements to ensure accountability and transparency, such as voluntarily reporting disaggregated data on FVTC usage.
Recipients’ public schools or districts Beneficiaries Organize to create their own SGO with a mission to support public school students.
Individual Donors Funders Establish their own criteria where they only donate to SGOs that support public schools, publish accessible data, and are fiscally responsible.

Questions for Consideration
  • Who is having conversations in your context about the FVTC? Who can you connect with to learn more about how your state ecosystem could look?
  • If the state won’t take a strong oversight position, what are the mechanisms to still incorporate guardrails?

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