Beginning in January 2027, New Hampshire families will have access to a new source of education funding: the Federal Education Freedom Tax Credit program. New Hampshire is one of the many states that has already opted in, with Governor Kelly Ayotte announcing the decision earlier this year.
If you’ve heard this program referred to by different names, you’re not alone. Depending on the source, it’s been called the “Federal Education Tax Credit,” the “Federal Tax Credit Scholarship,” or the “Education Freedom Tax Credit.” Whatever the final name is, the important point is this: it creates another pathway for families to get education-related scholarships.
Unlike New Hampshire’s current Education Freedom Accounts (EFAs) and state Education Tax Credit (ETC) scholarships, this new federal program appears to be available even to students enrolled in their local public schools.
That’s a significant difference.
So what would the federal program cover?
The law allows scholarship funds to be used for a wide range of education-related expenses. Eligible uses may include:
- Private school tuition
- Tutoring
- Educational therapies and special-needs services
- Curriculum and course materials
- Online learning programs
- Other qualifying educational services and products
Students may qualify even if they are enrolled in a district or charter public school, meaning families could potentially use scholarships for supplemental tutoring, enrichment, or specialized services while staying in their current school.
The scholarships themselves are funded through voluntary donations to the scholarship granting organization. Donors receive a federal tax credit — up to $1,700 annually — for contributions they make to participating organizations.
That distinction matters. A tax credit is far more valuable than a normal tax deduction. A deduction merely lowers your taxable income; a tax credit directly lowers the taxes you owe, dollar for dollar. In other words, if you owe $1,000 in taxes and receive a $1,000 tax credit, your tax bill drops by the full $1,000.
For many donors, these programs provide an effective way to support educational opportunities for families using money they would otherwise send to the government in taxes.
In New Hampshire, Children’s Scholarship Fund (CSF) is expected to play a major role in administering the new program.
How is this different from EFAs and ETCs?
New Hampshire families already have two scholarship-style programs available today.
Education Freedom Accounts (EFAs)
EFAs are state-funded accounts that eligible families can use for approved educational expenses such as private school tuition, homeschool expenses, curriculum, tutoring, and more. Students cannot be enrolled full-time in their local district public school or a charter school while receiving EFA funds.
Education Tax Credit (ETC) Scholarships
ETC scholarships are funded through donations from businesses that receive New Hampshire tax credits in return. These scholarships are generally intended for lower-income families and students leaving a public school environment for another option, such as private school, homeschooling, online learning, or an out-of-district public school. Of course, individuals can also donate to CSF for this program and deduct the amount from their federal income taxes (but not get a tax credit).
The new federal program adds a third option — and potentially a more flexible one for families who simply need additional educational support, regardless of where their child attends school.
Current EFAs in New Hampshire provide a base amount of about $4,265 per student, with additional funding available for low-income students, students with special needs, and English learners. ETC scholarships are generally smaller, typically around $3,000–$3,400 per student.
One More Important Point
While scholarships can be incredibly helpful, it’s worth remembering that some education options already cost families little or nothing.
Charter schools in New Hampshire are public and tuition-free. Homeschooling is often far less expensive than many people assume — many families spend well under $1,000 per year, especially when using libraries, co-ops, shared resources, and online materials.
But for families seeking private school tuition assistance, specialized services, tutoring, therapies, or other customized learning supports, this new federal program could become another valuable tool in the education funding toolbox.
We expect additional details and application guidance over the coming months as federal rules are finalized and scholarship organizations prepare for the January 2027 launch. EdOpt will continue tracking developments and sharing updates as we learn more.
Swanzey Fair – Our 3rd Fair in 3 Weeks
The EdOpt Fair in Swanzey took place Thursday May 21. Pollianne Stenstrom from the One Room Schoolhouse Microschool was our local organizer. We are very appreciative of her efforts! There was a lot of good conversation all around.
Here are some pictures from the event.
More EdOpt Fairs
Claremont
- Wednesday, June 3 from 5-7pm
- Claremont Savings Bank Community Center, 152 South St, Claremont
- 16 Registered education providers and services include:
- ABA Centers of America
- AVA Gallery and Art Center
- Camp Constitution
- Claremont Christian Academy
- Claremont Public Schools
- Cornerstone Chartered Public School
- Children’s Scholarship Fund of NH (EFAs)
- Daniel Learning Services
- Education Options (navigator)
- Estabrook Christian School
- Friends Forever International
- Mount Royal Academy
- New Hampshire Timberland Owners Association
- Ready Set Grow Childcare and Preschool
- River View Chartered Public School
- That Math Stuff
- Upper Valley Homeschoolers
- …spots still available…
- Providers and attendees can register here.
We’re also working on a fair in Bow, Ossipee, and other places in the summer and fall. Let us know if you want to organize one in your area!
Let your friends know about these fairs. Word of mouth is the best way to advertise. Also, follow us and share our events and posts on Facebook, Instagram, and X.
About EdOpt
EdOpt is a 501(c)(3) non-profit whose aim is to help families understand all their education options, from non-traditional (homeschooling, homeschool co-ops, microschools) to traditional (charter schools, private schools, tech centers, dual enrollment, learn everywhere).
Use our website to find education providers options around the state. Please let us know if we’re missing any!
EdOpt also provides guidance to help you figure out what will suit your children. Set up a FREE Education Options consultation today. And check out our new AI Assistant, the EdOpt Navigator, available on every website page.
Share this post with your friends.
