Big News: Federal School Choice is Here—And It Impacts Alabama

For decades, AOSF has put parents — not systems — in the driver’s seat when it comes to their children’s education. We know one size doesn’t fit all. That’s why the new federal Education Freedom Tax Credit (a.k.a. federal scholarship tax credit) is a big deal: it lets everyday taxpayers redirect part of what they already owe in federal taxes to directly fund K-12 scholarships for Alabama students. Here’s the practical version of how it works, and why it matters.

When you give to support K–12 scholarships, not all tax incentives are created equal — and knowing the difference can help make your gift go further.

When donors give to the Alabama Opportunity Scholarship Fund, they’re not just funding tuition. They’re opening doors to schools like Faith Academy in Mobile — places where students are known, supported, challenged, and grounded in faith. Faith Academy is a private Christian school committed to developing the whole child: academically, spiritually, and personally. Excellence isn’t just a tagline there. It’s woven into the classroom, the stage, the football field, and the daily rhythms of school life. And for many families, access to that kind of education is only possible because of scholarship support.

What Is the Education Freedom Tax Credit? The Education Freedom Tax Credit (EFTC) is a federal tax credit that lets Alabama taxpayers reduce their federal income tax liability by donating to a qualified Scholarship Granting Organization (SGO) like the Alabama Opportunity Scholarship Fund. When you give, you get a dollar-for-dollar federal tax credit, not just a deduction, for your contribution. Key benefit: Donate up to $1,700 per individual and cut your federal tax bill by the exact same amount. This makes the EFTC one of the most impactful tools for supporting school choice and education scholarships in Alabama.

Big changes are coming to school choice and Alabama families stand to benefit in a major way. The new Education Freedom Tax Credit , launching in 2027, creates a federal tax credit for people who donate to scholarship-granting organizations like the Alabama Opportunity Scholarship Fund (AOSF) . Translation: taxpayers can redirect part of their federal tax bill to fund K–12 scholarships for students right here in Alabama. This isn’t a policy talking point. It’s a real, practical opportunity to expand educational access for families who need options. Let’s break it down.

Sherri Rowton, Development Director, shares why she supports school choice for all Alabama families. I was fortunate to grow up in a family where education was always a top priority. My mother was a first-generation college graduate who spent her career as an elementary school teacher. My father overcame a difficult childhood by enlisting in the military, where he earned a bachelor’s degree and two graduate degrees. From an early age, I saw how education can open doors and change the trajectory of a life. I later spent two decades as a fundraiser for Auburn University, where I witnessed firsthand the transformative power of education. Our generous donors gave so that others could earn an education—something no one could ever take away from them. But that foundation must begin well before college, equipping students for lives in which they, and their families, can truly flourish. That is why Alabama Opportunity Scholarship Fund is so invaluable. Through the generosity of our supporters, we empower parents to choose the school and learning environment that best fits the needs of their children—whether public, private, homeschool, or microschools. My own family experienced the difference the right school can have. Our local public school provided my older son with exactly what he needed to succeed; he is now a college graduate with a full-time career. My younger son, however, needed an environment with more structure than his school could provide. We were able to find a setting that better met his needs, and he is now a college senior—an outcome I sincerely doubt would have been possible without that change. It is my honor and privilege to work alongside such generous donors who make opportunities like these possible for families across Alabama. Education freedom is truly a win-win for families, for our donors, and for the future of our state.

Meet Tonya Jones, our Implementation & Operations Manager, and learn why school choice matters to her and to families across Alabama.

Meet Casandra Meguiar, our Development Manager, learn why school choice matters to her families and to families across Alabama.

Meet the people behind our work and discover why school choice matters—through personal stories of opportunity, access, and impact.