Kentucky legislature overrides Gov. Beshear's veto of FSTC opt-in bill
Kentucky's legislature overrode Governor Andy Beshear's veto of HB 1 on March 17, 2026, opting Kentucky into the Federal Scholarship Tax Credit (FSTC / ECCA) program despite the governor's objection.
On March 17, 2026, the Kentucky legislature voted to override Governor Andy Beshear's veto of HB 1, the state's bill to opt in to the Federal Scholarship Tax Credit (FSTC) program. Beshear had vetoed the bill the day before, on March 16. The override means Kentucky will participate in the FSTC — the federal program known as the Educational Choice for Children Act (ECCA) and codified at IRC §25F — beginning when the program launches on January 1, 2027.
Kentucky's path to participation is unusual: most opt-in states have either had governors actively support the program or had governors and legislatures aligned. Kentucky is one of a handful of states where the legislature affirmatively forced participation against the governor's wishes through a supermajority override.
For Kentucky families, the practical effect is the same as in any other opted-in state: families at or below 300% of Area Median Gross Income will be eligible to apply for scholarships through state-designated Scholarship Granting Organizations (SGOs) once the program goes live in 2027.
Whether Kentucky stays opted in long-term depends on future legislative cycles and gubernatorial decisions. The FSTC opt-in is annual; participation must be re-certified each January 1 by submitting an SGO list to the U.S. Treasury.