Written by Grace Sargent
Governor Larry Rhoden announced Friday that South Dakota recently became the fourth state in the country to officially opt in to President Trump’s education tax credit program.
The tax credit program would give South Dakota federal income tax payers a new option: Rather than send your dollars to the federal government, you can donate some of the dollars to a school choice scholarship program instead. Here’s how it works: Beginning in 2027, individual taxpayers can send a $1,700 donation to a scholarship organization (like Partners in Education) and have $1,700 reduced from your federal taxes.
The federal program came from Trump’s “One Big Beautiful Bill,” and states were given the option to opt-in to the scholarship program. Scholarships can be used by students for private schools, but also for supplemental programs within public schools, such as tutoring, computer technology, equipment, or internet access.
The program is funded federally through the tax credit, not through direct state funding. South Dakota residents can take advantage of the new federal tax credit, providing parents more freedom to choose the best learning environment for their children.
Governor Rhoden underlined the importance of the program, saying “Our students are the future of our state, and we must equip them with the skills and resources they need to thrive.” He echoed a sentiment that we at Family Voice hold dear: “Parents should have the freedom to choose the learning environment that sets their kids up for success.”
In the last 5 years, the number of students opting for education options outside of the public school setting has jumped significantly—nearly tripling in the last decade—and now accounts for about 17% of school-aged South Dakotans.
South Dakota Education Secretary Joe Graves is also in favor of the tax-credit program, as he supports the diversification of education options within the state. He believes this effort will increase the abilities of families’ options in education to access an education that would be best for their children.
Family Voice is excited for this new option to be accessible to South Dakotan youth and will continue to make efforts to continue increasing accessibility to school choice options for families.
