Idaho Expands School Choice with New Tax Credit Program

Boise, Idaho – Governor Brad Little has taken steps to further expand school choice options for Idaho students by signing an executive order opting into a federal scholarship tax credit program. The program, established through the One Large Beautiful Bill Act, allows individuals to receive a federal tax credit for donations to qualified scholarship granting organizations.

Governor Little issued the executive order on February 16, 2026, stating, “Idaho is proud to be the only state offering education freedom from kindergarten through career. My executive order strengthens our commitment to ensuring every parent has the opportunity to choose the education environment that best fits their child.”

How the Tax Credit Works

The One Big Beautiful Bill Act created a federal tax credit for individuals who donate up to $1,700 to a qualified scholarship granting organization. These organizations then provide scholarships to students, allowing them to attend private schools or other educational programs. States must actively opt into the program to allow their residents to participate.

Idaho Leaders Support Expanded Choice

Several Idaho leaders voiced their support for the initiative. Senator Lori Den Hartog emphasized the importance of individualized learning, stating, “Every student learns differently and deserves an education that reflects their individual strengths and needs. Idaho’s commitment to education freedom ensures families have meaningful options to find the path that works best for their child.”

Representative Jason Monks highlighted the responsiveness to Idaho families, saying, “Idaho families have consistently called for more choices in their children’s education. By expanding education freedom, we’re responding to Idahoans and ensuring parents have greater access to options that meet their child’s individual needs.”

Superintendent of Public Instruction Debbie Critchfield added, “Opting in on this opportunity will benefit every student and family in Idaho, no matter what their educational choices may be. This is a chance to give Idahoans more – more support, more resources, and more options – without taking away from what we already have.”

Idaho’s Participation

Idaho officially submitted documentation declaring its intention to participate in the program on January 20, 2026. Governor Little’s executive order directs the Idaho State Department of Education to implement the new education tax credit program. Executive Order 2026-03 details the implementation process.

Broader Tax Changes in Idaho

This move to expand school choice follows Governor Little’s signing of a bill on February 11, 2026, conforming Idaho’s taxes to changes made by the federal One Big Beautiful Bill Act. The bill is expected to reduce state revenue by $155 million in the current fiscal year, and potentially more in the future.

Other tax changes included in the bill include eliminating taxes on workers’ tips, overtime pay for some employees, and providing an enhanced deduction for seniors, as well as corporate tax benefits such as full deduction on eligible research and experimentation expenses starting in 2025.