A new year is upon us, and analysts are already predicting how education policy will shape up during 2026 under the Trump administration.
One writer noted that while last year brought announcements of executive orders, investigations, and freezing grant funds, “making sure his policies outlast his presidency” is the next and harder part. Part of this will happen through the rulemaking process, whereby agencies flesh out the particulars of a law through regulations. One scholar is quoted as saying 2026 will be “the year of rulemaking.”
At the end of December, Sutherland Institute submitted a public comment on the proposed rulemaking for the new federal tax credit scholarship program Congress created in the One Big Beautiful Bill.
You can read our public comment on the federal regulations website or read it below.
Sutherland Institute’s public comment
Sutherland Institute’s public comment on Federal Tax Credit Scholarship Regulations
Sutherland Institute is eager to see how the federal tax credit scholarship supports state-driven successes in educational choice and expands it elsewhere. The long-term success of this program will be determined by how well it provides new education opportunities for families and respects the balance of federalism, where states remain leaders in education. With this in mind, during the regulatory process, we encourage the following principles and policies be kept in mind:
Ensure federal reporting requirements are simple and avoid becoming onerous
Any compliance or reporting requirements should be streamlined to meet the federal program’s needs without becoming onerous. No matter how well-intentioned, federal education policies result in reporting and compliance work at the state level, with a financial cost in terms of time and labor. (For example, an audit for the Utah State Board of Education, published in November 2025, found that administering federal programs costs the state $8-12 million in unrecovered costs each year over the past three years.)
The aim of the current administration and this new federal tax credit scholarship program is to expand education choice while also reducing federal interference at the state level. Federal requirements for state compliance with this program need to be thoughtfully tailored to avoid burdening states while they do the important work of innovating and providing opportunities for families.
Clarify that states cannot create discriminatory hurdles for SGOs
While federalism requires that states retain complete power over their own state education programs and full power to opt in to the federal program, federalism does not require that states be able to add unduly restrictive or unlawfully discriminatory criteria to the federal SGOs’ eligibility standards.
A legitimate concern with allowing states to add criteria to SGO eligibility is that states with unfavorable views of education choice or of a particular SGO’s mission could create additional hurdles to eligibility that could improperly diminish opportunities for families.
As much as regulations do allow states to add requirements to federal SGO eligibility standards, they should ensure that state criteria are not used to unduly restrict or unlawfully discriminate based on the SGO’s values or mission.
Protect religious private schools and SGOs
An ongoing concern for private schools receiving government funding or participating in government programs (state or federal) is the tendency for regulations to grow over time. Thus, regulations should make it clear that the tax credit scholarship program will in no way exclude SGOs based on religion or encroach on the admissions, hiring, or curriculum standards of private schools, especially religious private schools.
Thank you for your consideration of this public comment.
Sincerely,
Sutherland Institute
Conclusion
For those interested in reading all public comments on proposed regulations related to the federal tax credit scholarship program, or in submitting public comments on other education-related regulations as they come along, you can find more information on the federal regulations website. Getting involved in federal rulemaking is a key way for state and local leaders to protect their interests.
