Alaska has opened applications for nonprofit organizations seeking approval as K–12 Scholarship Granting Organizations (SGOs) under the new federal Education Freedom Tax Credit. This initiative, established by President Donald J. Trump through the Working Families Tax Cuts Act, allows individual taxpayers to receive a dollar-for-dollar federal income-tax credit for contributions to approved SGOs, which then award scholarships to eligible K–12 Alaska students.
Beginning January 1, 2027, taxpayers can contribute up to $1,700 annually to an SGO and claim the credit. These scholarships are designed to help cover various educational expenses, including tuition, tutoring, books, classroom supplies, and services for students with disabilities. The program supports students across all educational models, including neighborhood public schools, charter schools, home schools, and private or religious institutions. A recent analysis estimates that 95% of Alaska’s K–12 students will be eligible.
Governor Mike Dunleavy highlighted the program's potential, saying, "This is a tremendous opportunity for Alaska’s K–12 students, no matter where they go to school or how they learn." He added that it "will bring new resources into education and give students better access to tutoring, books, specialized services, tuition assistance, and other opportunities."
Department of Education and Early Development Commissioner Deena Bishop noted that the program "gives people a new way to meet" educational needs, helping students "catch up, move ahead, learn a trade, or receive support tailored to a disability." Approved SGOs must be nonprofit organizations, dedicate at least 90% of their income to scholarships, and award scholarships to a minimum of ten students who do not all attend the same school.
Nonprofit organizations interested in becoming approved SGOs must submit a letter of interest and a copy of their IRS 501(c)(3) determination letter to SGO@alaska.gov. Applications are being evaluated on a rolling basis, with the State expecting to approve its first group of SGOs by September 30, 2026.