A new federal scholarship program launching Jan. 1, 2027, will let West Chester and Liberty Township families apply for money to cover private school tuition, tutoring and special education therapies.

Ohio is among 30 states that have opted into the Federal Scholarship Tax Credit, according to the IRS's list of participating states published as of Sept. 14. The program is what the Treasury Department calls the first nationwide school choice program. President Donald Trump signed it into law on July 4, 2025.

U.S. Secretary of Education Linda McMahon said in a Thursday, Oct. 1 statement that the program will give every child access to education not limited by ZIP code, family income or government-imposed barriers.

How it works

The program runs on donations, not direct government grants. Individual taxpayers can contribute up to $1,700 to a Scholarship Granting Organization (SGO) and receive a dollar-for-dollar federal tax credit. Married couples filing jointly can claim up to $3,400, according to the Treasury Department. Donors anywhere in the country can fund Ohio scholarships.

Children in elementary through high school whose families earn up to three times the area median income can qualify. The U.S. Department of Education estimates about 96 percent of children in participating states will be eligible, as WLWT first reported. No Butler County-specific income threshold has been published.

SGOs in each state decide how much to grant each child, depending on available funds and student need.

What the money covers

Scholarship recipients can use funds for private or religious school tuition, tutoring, special education therapies, books and computers, according to Treasury officials. Public school students do not have to leave their district to qualify. They can use scholarship dollars for supplemental expenses, though the administration has not spelled out specific criteria for eligible expenses.

What it means for Lakota families

For Lakota Local Schools, the program arrives amid growing enrollment pressure. The district enrolled 17,348 students at the start of the 2025-2026 school year and is already over capacity by 771 students, according to WVXU. Enrollment is projected to exceed 19,000 by 2033. A $223 million bond issue is on the Nov. 3 ballot.

School choice is already a live issue in the district. In September 2026, the board voted 4-1 to declare transportation to non-public schools impractical, then reversed course and reinstated bus service for students at Cincinnati Christian Schools, Sacred Heart, Montessori Academy and Cincinnati Hills Christian Academy after parents pushed back, according to WCPO.

"Families should never lose their rights because the district failed to provide a timely notice," board member Ben Nguyen said at a September 2026 meeting about that bus-service decision.

Ohio homeschoolers may not qualify

The program covers homeschooling costs in some states, but Ohio families who homeschool may face a barrier under the 2027 rules.

Treasury's proposed regulations require students to be enrolled in a school as their state defines it. Ohio law defines "home education" as parent-directed instruction and explicitly states it does not include enrollment in a public or chartered nonpublic school. That means Ohio homeschoolers may not be able to spend scholarship funds under the current rules.

EdChoice's analysis found 28 states have this gap. Treasury has opened the homeschool eligibility question for public comment, and the issue could be resolved differently for 2028.

Ohio already spends more than $1 billion annually on five private school choice programs, ranking fifth nationally, according to EdChoice's 2026 spending rankings. The federal tax credit adds a new layer.

What comes next

The Treasury Department released proposed regulations on Thursday, Oct. 1. The public has 60 days to comment. EdChoice estimates scholarship money will realistically reach families by summer 2027 or the start of the 2027-2028 school year. No Ohio-specific SGOs have been publicly identified, and the IRS portal for SGO registration has not opened.