Federal scholarship program opens new option for Johns Creek families

Johns Creek families could get help with private school tuition, tutoring and other education expenses through a federal scholarship program launching Jan. 1, 2027.

Gov. Brian Kemp enrolled Georgia in the Federal Scholarship Tax Credit program in January. It provides tax credits to donors who contribute to approved nonprofit scholarship-granting organizations, or SGOs. Those organizations distribute scholarships to eligible K-12 students.

Kemp said the program would complement Georgia’s existing GOAL Scholarship Program, CBS News reported.

“All they had to do is sign an IRS form. That’s probably the happiest I’ve ever been signing an IRS document,” Kemp said Jan. 20.

Who qualifies

Students qualify if their household income is no more than 300% of the applicable area median gross income. Eligibility depends on each family’s income and the program’s applicable threshold.

Meeting that requirement does not guarantee a scholarship. Each SGO determines recipients and award amounts based on donations and its application policies.

Scholarships can cover private or religious school tuition, tutoring, textbooks, computers and certain special education services. Public school students could receive help with tutoring and specialized services without leaving their school. Homeschooling families may qualify for some expenses under applicable rules.

How the money works

The proposed federal rules allow donors to claim dollar-for-dollar income tax credits of up to $1,700 for individual filers or $3,400 for married couples filing jointly.

The credit is nonrefundable, meaning it cannot reduce federal income tax liability below zero. Those limits apply to donors’ credits, rather than the scholarships students receive.

Families would apply through participating SGOs, which distribute the money and set scholarship amounts.

The program was authorized by the One Big Beautiful Bill Act, signed July 4, 2025. It operates separately from Georgia’s existing school-choice programs.

Georgia’s statewide education expense tax credit program reached its $120 million cap in 2025. Applicants received approval for 53% of their requested contributions, according to GOAL. The federal credit could provide another funding source.

Oversight and criticism

SGOs must be qualifying 501(c)(3) charities, devote at least 90% of their income to scholarships and serve at least 10 students who do not all attend the same school.

The proposed regulations would require annual independent financial and programmatic audits. Smaller organizations could use a committee of independent reviewers.

Critics have questioned whether the program offers sufficient oversight. The Center for American Progress, a progressive policy organization, has raised concerns about accreditation and protections against discrimination. Critics also warn that families already paying private school tuition could receive scholarships while lower-income applicants compete for limited funds.

Johns Creek is home to private schools including Mount Pisgah Christian School and Woodward Academy’s North Campus. Families considering those schools will need to check participating SGOs’ application requirements and scholarship availability.