Virginia became the first state to opt in — now its new governor will decide whether to keep it

Virginia was the first state in the country to formally opt into the federal Scholarship Tax Credit (FSTC) — the program known to Congress as the Educational Choice for Children Act (ECCA) and codified at IRC §25F. Outgoing Governor Glenn Youngkin (R) announced and submitted the opt-in in his final weeks in office, with participation taking effect January 1, 2026; news coverage of the move ran in early January 2026. The program itself does not begin until January 1, 2027.

The timing was contentious. Youngkin made the move days before leaving office, and critics — including the Virginia Education Association — characterized it as a last-minute attempt to lock Virginia in before the U.S. Treasury and IRS had finalized the program's rules. The VEA called on incoming Governor Abigail Spanberger (D), who took office in mid-January 2026, to review the final federal guidance before deciding whether Virginia should continue participating.

That hands Virginia a distinction beyond being first: it is the first real test of whether a state's opt-in survives a change of administration and party. Because the FSTC opt-in is an annual decision — a governor submits (or declines to submit) a qualifying Scholarship Granting Organization list to the U.S. Treasury each participating year — a successor governor is not necessarily bound by a predecessor's election in future years. Whether Spanberger maintains, modifies, or reverses Virginia's participation ahead of the 2027 launch is being closely watched as a model for other states where control could change hands.

If Virginia stays in, families at or below 300% of the relevant Area Median Gross Income will be eligible for scholarships through state-designated SGOs once the program goes live, funding tuition, tutoring, educational therapies, and other qualified K-12 expenses. Donors anywhere in the country can claim a non-refundable federal income tax credit of up to $1,700 per tax return for contributions to a qualifying SGO.