Kentucky will be among several states participating in a new scholarship tax credit under President Donald Trump’s One Big Beautiful Bill.
Secretary of State Michael Adams signed documentation Wednesday opting the commonwealth into the program, originally part of legislation in House Bill 1, over the veto of Gov. Andy Beshear, who attempted to reject the move in March.
The program allows those who make donations to scholarship-granting organizations to claim a tax credit up to $1,700 each year for scholarships for a variety of education costs. The credit is offered to those who donate to qualifying organizations as designated by the IRS and can be used for “qualified elementary and secondary education expenses.”
State reps. Kim Moser, R-Taylor Mill, and T.J. Roberts, R-Burlington, sponsored HB 1.
“This President, Congress, General Assembly and Secretary of State have Kentucky students’ backs,” Adams said in a news release. “All eligible Kentucky students – public, private and home-schooled – will soon have access to better and more affordable education.”
Critics of the program and HB 1 have said it is another attempt to divert dollars from public schools to private institutions.
In vetoing HB 1, Beshear said compared the program to school vouchers, which Kentucky voters rejected in a 2024 ballot measure.
“Now the work shifts from Frankfort to our communities,” Moser said in the release. “This program will only succeed if Kentuckians step forward. I encourage community leaders, nonprofit organizations, business leaders, philanthropists, and individuals to consider establishing Scholarship Granting Organizations or supporting those that do. Our students in public and private schools will see the benefit.”
