Federal Tax Credit Scholarship Program Starts in January
Taxpayers can redirect up to $1,700 of federal income tax to private school scholarships beginning January 1.
Updated on Oct. 24, 2026 in Scholarships
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Nevada taxpayers will soon have the option to redirect federal income tax payments toward private school scholarships. Governor Joe Lombardo announced the upcoming Federal Tax Credit Scholarship Program during a visit to Founders Classical Academy with Virginia Governor Glenn Youngkin.
Why it matters
The program arrives as the state grapples with a 46th-place national ranking in education outcomes, sparking ongoing debate between the Governor and critics like Attorney General Aaron Ford over the best path for school funding.
Starting January 1, taxpayers can redirect up to $1,700 in federal income taxes to support the Nevada Opportunity Scholarship, which offers awards of up to $10,094. This builds on a $2 billion increase in school funding and a 5% rise in literacy rates since 2022.
The players
Joe Lombardo
The Governor of Nevada is seeking reelection while promoting his education initiatives.
Glenn Youngkin
The Governor of Virginia visited Las Vegas to support school funding policies.
Aaron Ford
The Attorney General of Nevada opposes the Governor's education policies due to current state rankings.
The details
The Federal Tax Credit Scholarship Program allows residents to bypass federal payments by directing funds to certified scholarship organizations. While Governor Lombardo highlights this as a way to bolster private school options, the move follows his 2023 veto of state-funded school meals. Residents can expect the program to launch early next year as part of a broader strategy to increase per-pupil funding.
Timeline
The Nevada Opportunity Scholarship program was established in 2015.
Governor Glenn Youngkin visited Founders Classical Academy on October 22, 2026.
The Federal Tax Credit Scholarship Program takes effect January 1, 2027.
Beyond the Strip
This program serves as a direct response to Nevada’s 46th-place ranking in the 2025 Kids Count report. It signals a shift toward federal-level tax redirection to support private schooling in the valley.
Starting in January, you can redirect a portion of your federal tax liability to certified scholarship organizations to help fund private tuition. Check your 2027 tax planning documents to see if this redirection impacts your federal obligations.
The takeaway
Taxpayers should review the program requirements before the January 1 launch date to understand the eligibility limits. Keep an eye on local education board meetings for updates on how these private scholarship funds interact with public district resources.
Further reading
Learn more about the latest developments in local education funding through our scholarships section.
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