US President Donald Trump on 25 August 2025 promoted what his administration describes as the largest expansion of school choice in American history, telling students, parents, and educators at a White House Rose Garden back-to-school event that parents — not Washington — should decide where their children are educated.

The Education Freedom Tax Credit

At the centre of the push is the Education Freedom Tax Credit, embedded in the One Big, Beautiful Bill Act that Trump signed on 4 July 2025. The provision establishes a federal tax credit of up to $1,700 for contributions to non-profit organisations that award scholarships covering tuition, books, and other basic educational costs at public, private, or religious elementary and secondary schools.

Education Secretary Linda McMahon said the credit would cover more than 50 million eligible children. 'Children belong to their parents, not the federal government,' McMahon said. 'Through the education freedom tax credit, President Trump has delivered the largest national expansion of education freedom in history for over 50 million eligible children, giving parents unprecedented freedom to choose the path that is best for their child.'

529 Accounts Expanded

The legislation also doubled the annual withdrawal limit for 529 education savings accounts for kindergarten through Grade 12 expenses — from $10,000 to $20,000 — and extended their use to private, religious, and home-school education. 'For the first time ever, families can also use their 529 accounts to support homeschool education,' Trump said at the event.

Federal Controls Loosened for States

McMahon announced that six states had already received the first 'returning education to state waivers', freeing more than $100 million from federal controls. An additional 25 states are reportedly using existing authority to reduce federal requirements for thousands of school districts. 'Key decisions that once sat with bureaucrats here in Washington, D.C. are moving to where they belong — to the hands of educators, parents, and local leaders who know these children best,' she said.

Families at the Centre of the Announcement

Caleb Griffith, a North Carolina father of three biological children and two foster children — one with autism and another with developmental delays — spoke at the event. 'The educational freedom tax credits will give my children the access to the services they need to be successful in the most formational years of their lives,' Griffith said, illustrating the human dimension the White House sought to highlight.

Broader Education Agenda

Trump also reiterated his broader education agenda, noting that an executive order signed previously had begun 'the process of eliminating the federal Department of Education'. He said his administration had ended programmes involving critical race theory and transgender issues in schools. This comes amid a sustained effort by the Trump administration to shift the federal government's role in education to a largely facilitative one, with states and localities taking on primary decision-making authority. Critics of the approach argue that reduced federal oversight could widen educational inequality in lower-income districts that depend on federal funding.