December 1: the deadline to tell Treasury what to change in the §25F rules

The §25F rules Treasury released on October 1 are open for comment. The proposed regulations (REG-117199-25) take written comments for 60 days after their scheduled October 2 publication in the Federal Register, which works out to December 1, 2026, and a public hearing is scheduled for December 15. Treasury and the IRS "request comments on all aspects of the proposed regulations," and the companion temporary regulations send readers to the same docket, so one comment reaches both. Our plain-English read of the rules covers what they say; this is how to weigh in on what the final version should say.

How to file. Commenters are "strongly encouraged" to file electronically through the Federal eRulemaking Portal at regulations.gov, indicating IRS and REG-117199-25. Paper comments go to CC:PA:01:PR (REG-117199-25), Room 5503, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044. Two cautions before you hit submit: every comment is published on the public docket, and "once submitted to the Federal eRulemaking Portal, comments cannot be edited or withdrawn." A plain-language summary of the rule is also posted on the docket.

Treasury did more than invite general feedback. It flagged specific questions in the preamble, and these are the places where the final rule is most likely to move.

The 85% test. Treasury asked whether further guidance is needed on how an organization measures its scholarship-granting activities, "including whether the determination should be based on receipts, expenditures, staff time, program-service activity, or another administrable metric," and whether 85 percent is a reasonable threshold. That test decides whether an SGO can measure the 90% spending rule against its §25F account alone (our 90% rule guide explains the mechanics).

Digital wallets and expense checks. Comments are requested on the definition of a qualified digital wallet "and whether additional safe harbors for verification that scholarships are spent on qualified elementary or secondary education expenses should be included in the final regulations." Proof of income. Treasury asked about "other needs-based programs, such as State or Tribal programs," that should join SNAP, TANF, WIC, Section 8, and SSI on the list that lets an SGO skip detailed income documents (see our income verification guide). Charity law. It asked "how section 501(c)(3) requirements interact with section 25F and whether any clarifications are needed."

State certifications. Both documents ask about the certifications a state makes for each SGO on its list, "including any other certifications that should be required for a multistate SGO," and "whether any certification is disproportionately burdensome compared to the benefits to tax administration." Small organizations. In its small-entity analysis, Treasury asked "whether there are less burdensome alternatives that adequately mitigate the risk of fraud or improper payment of scholarships under section 25F."

The hearing. It is set for Tuesday, December 15, 2026, at 10 a.m. Eastern in the auditorium of the Internal Revenue Building, 1111 Constitution Avenue NW, Washington, with a telephone option. Each speaker gets 10 minutes and must submit an outline of topics, with the time for each, by the comment deadline. If no outlines arrive by then, "the public hearing will be cancelled," with a notice in the Federal Register. To testify, email publichearings@irs.gov with REG-117199-25 and "TESTIFY in Person" or "TESTIFY Telephonically" in the subject line. To attend without testifying, use "ATTEND In Person" or "ATTEND Hearing Telephonically"; those requests are due by 5 p.m. Eastern on Thursday, December 10. In-person visitors need photo ID, enter on Constitution Avenue, and are not admitted more than 30 minutes early.

Treasury has heard from the field before. The proposed rules answer feedback on Notice 2025-70 and follow the meetings logged during White House review. This comment period is the formal step before final regulations: Treasury says that before the proposed rules are adopted as final, "consideration will be given to any comments" submitted on time. No date is set for them.

None of this pauses the launch. The temporary regulations on state elections, SGO lists, IRS registration, and donor acknowledgments took no comment period and apply from September 1, 2026, and taxpayers, SGOs, and states may rely on the proposed rules for contributions made starting January 1, 2027. Read the full text in our archive of the proposed regulations, keep building with the free SGO Builder, and see who is already operating in the SGO directory.