Governor Larry Rhoden announced that South Dakota will participate in President Donald J. Trump’s school choice initiative, part of the broader One Big Beautiful Bill program. The initiative allows states to opt in and offers families expanded educational options through tax credit scholarships.
“Our students are the future of our state, and we must equip them with the skills and resources they need to thrive,” Governor Rhoden said at a press conference at St. Josephs Academy. “Parents should have the freedom to choose the learning environment that sets their kids up for success. I am grateful that President Trump shares this conviction and is helping us create more opportunities for our students.”
Under the program, individuals can donate to approved scholarship organizations and receive a 100% nonrefundable tax credit of up to $1,700. The donations will fund scholarships that families can use for a wide range of educational purposes, including microschools, classical schools, and supplemental academic programs for public school students. The program is set to begin in January 2027.
Over the past five years, homeschooling in South Dakota has doubled, and alternative education models such as microschools and classical schools have also gained popularity, reflecting growing demand for more personalized learning options.
“Individuals can soon donate to scholarship organizations instead of paying more taxes to the federal government — that is a huge win for taxpayers, schools, and students!” Rhoden added. “My goal as Governor is to support innovation, not stand in the way. We will continue to champion policies that expand the freedom to learn for our students.”
The announcement comes as part of the state’s ongoing effort to expand educational choice and support innovative learning models across South Dakota.