Governor Dunleavy Approves Alaska’s First 20 K–12 Scholarship Granting Organizations

FOR IMMEDIATE RELEASE
October 2, 2026

Juneau, AK -Today the Alaska Department of Education and Early Development announced Governor Mike Dunleavy has approved the state's first 20 Scholarship Granting Organizations under the new federal Education Freedom Tax Credit Program.

The State received applications from organizations in Alaska and across the country. Each approved organization has been verified as tax-exempt under section 501(c)(3) of the Internal Revenue Code and has met Alaska's application requirements.

"The Education Freedom Tax Credit presents a tremendous opportunity for Alaska's children," said Governor Mike Dunleavy. "I'm pleased to approve this first round of 20 organizations so that Alaskan students can benefit from scholarship opportunities as soon as possible, and I look forward to additional scholarship granting organizations applying to help support the students of Alaska."

The U.S. Department of Treasury's newly issued proposed regulations confirm that participating states must include every qualifying organization located in the state that seeks inclusion on the State's SGO list. States may not pick and choose among eligible organizations, impose requirements more restrictive than federal law, limit the types of schools participating students may attend, or restrict the qualified K-12 expenses scholarships may cover. Alaska's role is to confirm that an applicant meets the federal requirements and generally applicable state laws governing charitable organizations, not to build another layer of regulation on top of the federal program.

President Donald J. Trump established the Education Freedom Tax Credit through the Working Families Tax Cuts Act. Beginning January 1, 2027, an individual taxpayer may make a qualifying cash contribution to an approved SGO and receive a dollar-for-dollar federal income-tax credit of up to $1,700. A married couple filing jointly may receive up to $3,400 if each spouse makes a qualifying contribution of up to $1,700.

Taxpayers across the country may contribute to an Alaska SGO and help Alaska students. SGOs may pool contributions from many taxpayers, meaning an individual student's scholarship can be substantially larger than $1,700.

Approved SGOs will use those contributions to award scholarships to eligible Alaska K-12 students. Depending on the student and the SGO, scholarships may help cover tuition, tutoring, books, classroom supplies, career and technical education expenses, services for students with disabilities, and other qualified K-12 education expenses. Treasury estimates that approximately 95 percent of school-age children in participating states will satisfy the program's income-eligibility requirement.

The program can support students in neighborhood public schools, charter schools, correspondence schools, private schools, religious schools, and other eligible educational settings. It will bring new private scholarship dollars into K-12 education, supplementing the substantial investment Alaska and its communities already make in public schools, while giving families more ways to meet the particular needs of their children.

"These organizations can begin building partnerships now." said Department of Education and Early Development Commissioner Deena Bishop. "Schools can identify needs. Families can learn about the scholarships that may be available. Donors can begin putting resources behind Alaska's K-12 students. We are excited to see so many organizations stepping forward."

The State approvals are effective immediately. Each approved SGO may rely on its approval as it begins organizing its scholarship program, working with Alaska schools and education providers, and raising charitable contributions.

Contributions made before January 1 will not qualify for the new federal tax credit, but they may qualify for a federal charitable-contribution deduction under existing law. Beginning January 1, qualifying contributions to SGOs appearing on the IRS's 2027 SGO list may receive the new dollar-for-dollar credit. Donors should consult their tax advisers regarding their individual circumstances.

Under federal law, SGOs must devote at least 90 percent of their income to scholarships for eligible K-12 students. They must also maintain separate accounts for qualifying contributions and follow federal requirements governing student eligibility, scholarship awards, financial controls, reporting, and fraud prevention.

The following organizations have been approved:

• AAA Scholarship Foundation

• ACE Alliance for Choice in Education

• AFC Scholarship Fund

• Alaska Students First

• American Catholic Education Fund

• Christian Education Network

• Federal Student Scholarship Organization, Inc.

• Friends of Spruce Tree Montessori

• Gifted & Talented Scholarships

• Head of Federal Scholarship Tax Credit

• Hometown Scholarships

• Jewish Education Fund of America

• Jewish Opportunity Fund

• K-12 Scholarship Foundation, Inc.

• Noble Arch Fund

• Orthodox Christian Scholarship Fund, doing business as Orthodox Christian Education Network (OCEN)

• Pay Your Tuition Foundation

• Renew Scholarships Alaska

• Scholarkids

• Student Athletic Scholarships

Alaska will continue accepting and reviewing applications on a rolling basis. The State expects to submit its final 2027 SGO list to the IRS by December 1 and will include every organization that timely establishes that it meets the applicable federal requirements and generally applicable Alaska laws governing charitable organizations.

Organizations interested in applying may find additional information at: https://education.alaska.gov/sgo

###

The Alaska Department of Education and Early Development provides information, resources, and leadership to support over 130,000 students in 505 public schools across the state of Alaska. The mission of the department is to ensure an "Excellent Education for Every Student Every Day."

Media Contact: Bryan Zadalis, Public Information Officer - (907) 465-2800