StatesVirginiaEFTC · §25F

Opted in

EFTC in Virginia

Virginia is participating in the federal Educational Choice for Children Act scholarship program. Also known as the Federal Scholarship Tax Credit (FSTC), the program was enacted as IRC §25F and takes effect January 1, 2027.

Governor: Abigail Spanberger; Democrat
Status: Opted in; As of 2026-01-01
Program begins: January 1, 2027; Federal tax credit live

Thank Governor Spanberger

What EFTC means for Virginia

Because Governor Abigail Spanberger has opted Virginia into EFTC, families in Virginia will be eligible for scholarships funded through the program when it goes live on January 1, 2027. Designated Scholarship Granting Organizations (SGOs) in Virginia will receive donations from federal taxpayers and distribute them as scholarships to qualifying K-12 students.

Donors in Virginia, and anywhere else in the country, can claim a federal income tax credit of up to $1,700 per tax return for contributions to a qualifying SGO, beginning January 2027. The credit is non-refundable and capped, but it lets taxpayers redirect federal income tax that would otherwise go to the U.S. Treasury into scholarships for students in their own community.

Virginia's participation means federal tax dollars contributed by Virginia residents stay in Virginia, supporting families here rather than flowing to scholarship organizations in other states.

Frequently asked questions about EFTC in Virginia

Does Virginia participate in EFTC?

Yes. Governor Abigail Spanberger has opted Virginia into the program (decision: 2026-01-01), making Virginia families eligible for scholarships when the program begins on January 1, 2027.

Who is the governor of Virginia and what is their position on EFTC?

Governor Abigail Spanberger (Democrat) has opted the state in. Inherited the opt-in from outgoing Gov. Youngkin (R) days before taking office.

Can Virginia residents donate to an SGO and claim the federal tax credit?

Beginning January 1, 2027, any U.S. taxpayer can claim a federal income tax credit of up to $1,700 per tax return for donations to a qualifying Scholarship Granting Organization, regardless of the state they live in. Virginia residents can give to SGOs in Virginia and the scholarships will fund Virginia students.

When does the EFTC program begin?

The Educational Choice for Children Act program begins on January 1, 2027. Donations made on or after that date are eligible for the federal tax credit. Each participating state's governor must submit a list of qualifying Scholarship Granting Organizations to the U.S. Treasury by January 1 of each participating year.

Becoming an SGO in Virginia

To operate as a Scholarship Granting Organization (SGO) in Virginia under the federal Education Freedom Tax Credit, an organization must meet the §25F requirements that apply in every participating state, plus anything Virginia adds on top. Here is the current picture.

Certification status: List already submitted to Treasury

Administered by: Office of the Governor

How Virginia opted in: Gov. Youngkin's executive advance election (January 2026), the first state to opt in

Federal requirements (apply in every state)

Be a 501(c)(3) nonprofit that is not classified as a private foundation.
Spend at least 90% of the income you receive on scholarships, the remaining 10% is the only budget for all administration, including fundraising.
Award scholarships to 10 or more students who attend more than one school.
Do not earmark or reserve contributions for a specific, named student.
Serve students in households at or below 300% of area median gross income.
Appear on your state's certified SGO list, which the state submits to the U.S. Treasury.

Virginia-specific requirements

Virginia has not published SGO requirements beyond the federal rules yet. Certification mechanics are gated on Treasury’s proposed §25F regulations, expected by the end of September 2026, so watch for Virginia’s application window to open after that.

Virginia is the only state with a live SGO list already submitted to Treasury (about 13 organizations); the list may update as federal guidance evolves. The election is annual, so participation past the 2027 launch depends on Gov. Spanberger choosing to renew it.

Sources: EdNewsVA: Virginia is first state to formally opt in (January 2026)

Full walkthrough: how to start an SGO. The intake, income verification, receipting, and disbursement a compliant program needs can run on software built specifically for the §25F workflow.

Scholarship Granting Organizations in Virginia

40 Scholarship Granting Organizations currently serve Virginia through state tax-credit scholarship programs and national networks, the organizations most likely to administer the federal EFTC here once official §25F lists are certified.

Browse SGOs in Virginia →

Other states with the same status

States that have also opted in.

See all 50 states →

Recent Virginia EFTC / FSTC news

Coverage of Virginia’s Federal Scholarship Tax Credit decisions and developments.

For operators

Running an SGO?

SGO Software helps scholarship-granting organizations manage applications, compliance, and donor records, built for the EFTC from day one.

Learn about SGO Software

Learn more about EFTC

In-depth guides on how the program works, who qualifies, and how to participate.

Thank Governor Spanberger for opting Virginia in

A short note of thanks from a constituent goes a long way, and reinforces that participation matters to families in your state.

Contact Governor Spanberger →