On Friday, Governor Kay Ivey signed an executive order opting the state into participation with the Federal Education Freedom Tax Credit, a newly created program included in President Trump’s One Big Beautiful Bill.

Ivey’s order comes just days after she used her State of the State address to reiterate her goal of making Alabama “the most school choice friendly state in the nation.”

It also lands just ahead of National School Choice Week, which begins January 25 nationwide.

“For over a decade, Alabama has been a trailblazer in offering parents and students options to access and afford the best quality education, and soon our families will have even more resources,” said Governor Ivey.

“Beginning with the Alabama Accountability Act passed in 2013, many qualifying students have benefitted from scholarships allowing them to move to a better performing school. Two years ago, I championed and signed Alabama’s universal school choice law, the CHOOSE Act, which provides families with refundable income tax credits for qualifying educational expenses, including tuition, textbooks and after-school programs. And, today, I proudly signed an executive order to further expand Alabama school choice funding options by allowing qualified Alabama families to participate in the Federal Education Freedom Tax Credit program.”

According to the governor’s office, the federal scholarship program is similar to the Alabama Accountability Act and offers federal tax credits for contributions to approved scholarship granting organizations. Those contributions will then be used to provide scholarships to eligible elementary and secondary education students.

Scholarship funds can be used for tuition, books, fees, supplies, tutoring and special needs at both public, private, and religious schools. CHOOSE Act participants and Alabama Accountability Act recipients may be eligible to participate in the federal scholarship program.

Ivey’s order confirms Alabama’s participation in the Federal Education Tax Credit program and authorizes the Alabama Department of Revenue to administer the program, including certification of eligible participating scholarship programs within the state.

The program will take effect in January 2027.

Grayson Everett is the editor in chief of Yellowhammer News. You can follow him on X @Grayson270.