On July 4, 2025, President Trump signed the Educational Choice for Children Act (ECCA) into law. The program is scheduled to take effect on January 1, 2026.
The ECCA creates a federal tax credit program designed to expand educational opportunities by incentivizing donations to Scholarship Granting Organizations (SGOs). These SGOs will award scholarships to eligible students to help cover a range of educational expenses, including tuition at private and independent schools. The law includes specific limits on tax credits and eligibility criteria for recipients.
Although the ECCA is a federal initiative, its implementation is state-dependent. Each state, and the District of Columbia, must formally opt in for the program to become available to its residents. If a state participates, individuals and corporations may begin making qualifying donations and receiving the corresponding federal tax credits.
At this time, it is uncertain whether California will opt into the program. LCW will continue to monitor developments closely and provide updates as more information becomes available.