In June ’26, the IRS signaled where the rules will land later this year for the federal scholarship tax credit program, which begins January 1, 2027. There are significant implications for states.

One part of the preview says that states cannot make the program more restrictive than federal statute. And yet, states play an important role in the impact of this new, incremental funding source for education across the country.

Here are three important questions we think states should be working through right now.

“Should we participate?”

This is each state’s call to make, grounded in your state’s needs and priorities.

Before a “yes” or “no,” look honestly at what participation means for your students, your schools, your funding structure, and the constituents you’re accountable to. New, recurring education dollars of this magnitude don’t come along often.

Afton has developed a decision protocol for states working through this. The quality of the decision matters as much as the answer.

“What could this mean for our public education system?”

Participation or non-participation has real fiscal and enrollment implications, and they play out differently in every state.

Understanding how the program interacts with your existing funding and budget, your existing choice ecosystem, and your highest-need communities is essential groundwork — regardless of where you land on the first question.

“How do we get our education ecosystem ready?”

Schools, districts, and choice sector organizations do not automatically capture these dollars. They need the governance, financial infrastructure, and administrative capacity to do it well.

The states that benefit most from this program will be the ones that invest intentionally in readiness.

This is a consequential decision. Not one to navigate alone.

We’ll help you choose well, with your students at the center. Let’s talk.