A New Opportunity for Alabama Catholic Education

New Paragraph

Big changes are coming to school choice, and Alabama Catholic schools and families stand to benefit in a major way.


Beginning in 2027, a new federal program called the Education Freedom Tax Credit will allow taxpayers to receive a dollar-for-dollar federal tax credit when they donate to scholarship-granting organizations like the Alabama Opportunity Scholarship Fund.



In simple terms: families who believe in the mission of Catholic education will have a new way to help students access it,  while redirecting a portion of their federal tax dollars to scholarships right here in Alabama.


This is more than a policy change. It is a practical opportunity to strengthen access to Catholic education for families across the state.

What Is the Education Freedom Tax Credit?

The Education Freedom Tax Credit is a new federal program designed to encourage donations to scholarship organizations that help K–12 students access educational options that best meet their needs.


Starting in 2027, eligible donors can contribute up to $1,700 annually to a qualified scholarship organization and receive a dollar-for-dollar federal tax credit.


That means:

  • You donate to a scholarship granting organization like C2 Opportunity Scholarships
  • You claim the federal tax credit when filing your taxes
  • Those funds are then used to provide scholarships for Alabama students who want to attend a Catholic school


This is not a tax deduction. It is a direct federal tax credit.


Instead of sending those dollars exclusively to the IRS, families can help students access life-changing educational opportunities closer to home.


What This Means for Alabama Catholic Schools

Catholic schools across Alabama have long served families seeking strong academics, faith formation, community, and stability. For many parents, Catholic education is not simply about school preference — it is about finding an environment where their child can grow academically, spiritually, and personally.


But for many families, affordability remains a challenge. The Education Freedom Tax Credit creates another pathway for scholarship funding, helping more students access Catholic schools that may have previously been financially out of reach.

Importantly, this new federal credit does not replace existing Alabama programs. It works alongside them, helping expand opportunities for students and schools alike.


That means:

  • More students with access to Catholic education
  • More opportunities for Catholic schools to welcome mission-aligned families
  • More ways for donors to directly support students in their communities


A New Opportunity for Catholic Donors

For Catholic donors, this program offers a unique opportunity to live out the call to support families, students, and faith-based education in a tangible way.


Whether you are an alumnus of a Catholic school, a parishioner, a business leader, or simply someone who believes in the value of Catholic education, this credit creates a practical and impactful way to give.


Your contribution can help provide:

  • Access to faith-filled learning environments
  • Academic support and stability for students
  • Greater educational opportunity for working families
  • Long-term investment in Catholic education across Alabama


Same tax dollars. Greater local impact.


Who These Scholarships Help

These scholarships are designed to support K–12 students from families with demonstrated financial need. In many cases, these are hardworking families who value Catholic education but need additional support to make tuition affordable.

Scholarships funded through programs like this can help bridge that gap and ensure more students have access to the schools and communities that best support their growth.


Our mission remains straightforward: responsibly steward donor dollars and expand educational opportunity for Alabama students.


Looking Ahead to 2027

The Education Freedom Tax Credit officially launches in 2027, and interest is expected to be strong from the start.


If you are someone who:

  • Pays federal income taxes
  • Believes in the mission of Catholic education
  • Wants to make a direct impact on Alabama students and families


…this is a program worth preparing for now.


The Bottom Line

The Education Freedom Tax Credit creates a powerful new opportunity for Alabama Catholic education.

It gives donors a smart and meaningful way to give. It gives families greater access to educational choices. And it gives Catholic schools another avenue to continue serving students across the state.


More access. More opportunity. More Alabama students thriving in schools that support both faith and learning. That is an investment worth making.