On Friday, July 4, President Donald Trump signed the “One Big Beautiful Bill,” officially establishing the nation’s first federal scholarship tax credit. The new law enables eligible K–12 students to receive scholarships to attend the yeshivah or school of their choice.

By Anash.org reporter

This past Friday, President Donald Trump signed the “One Big Beautiful Bill,” officially establishing the nation’s first federal scholarship tax credit. The new law enables eligible K–12 students to receive scholarships to attend the yeshivah or school of their choice.

The legislation is part of a multi-trillion-dollar package that includes sweeping tax cuts and significant federal spending changes. Under the new law, every taxpayer can receive a credit of up to $1,700 per year for donations to approved nonprofit organizations that distribute scholarships to K–12 students. The bill also removes the previous annual cap on total donations, making the program far more flexible and impactful.

For many frum families burdened by rising yeshivah tuition costs, this new federal tax credit could offer meaningful relief – potentially generating hundreds of millions of dollars in scholarships.

As reported by Anash.org, the school choice provision had faced a serious setback just a week earlier, when Senate Parliamentarian Elizabeth MacDonough ruled that it violated reconciliation rules, which strictly limit what can be included in budget-related legislation. At the time, reports declared the federal school choice proposal “effectively dead.”

In response, lawmakers quickly revised the language to meet procedural requirements, and the U.S. Senate voted to include a modified version in the final reconciliation bill.

Agudath Israel of America praised the outcome. “Thanks to Senator Ted Cruz and Senate champions, the report of its demise was greatly exaggerated,” said Rabbi A.D. Motzen, Agudah’s National Director of Government Affairs. “The Senate saved school choice for American families.”