Dunleavy approves Alaska's first 20 K-12 scholarship granting organizations

Twenty nonprofits can now begin raising money for Alaska K-12 scholarships. Gov. Mike Dunleavy approved the state's first group of Scholarship Granting Organizations on Friday, Oct. 2, 2026, under the federal Education Freedom Tax Credit, created by the 2025 One Big Beautiful Bill Act for states that choose to join. Dunleavy opted Alaska in on Jan. 26.

The credit begins Jan. 1, 2027. An individual who gives cash to an approved organization may receive a dollar-for-dollar federal income-tax credit of up to $1,700. A married couple filing jointly may receive up to $3,400 if each spouse gives up to $1,700. Gifts made before Jan. 1 do not qualify for the credit, the department said, though they may qualify for a charitable deduction. Taxpayers in any state may give to an Alaska organization. To earn the credit, contributions must go to organizations on the IRS's 2027 list.

Scholarships may cover tuition, tutoring, books, classroom supplies, career and technical education and services for students with disabilities. Students in public, charter, correspondence, private and religious schools may qualify. Families earning up to 300 percent of their area's median income qualify, and Treasury estimates about 95 percent of school-age children in states that join meet that limit. Federal law requires each organization to spend at least 90 percent of its income on scholarships.

"I'm pleased to approve this first round of 20 organizations so that Alaskan students can benefit from scholarship opportunities as soon as possible," Dunleavy said.

Applicants came from Alaska and the Lower 48. The approved list includes Alaska Students First, Renew Scholarships Alaska, Friends of Spruce Tree Montessori, the American Catholic Education Fund and the Jewish Education Fund of America. The department said proposed Treasury rules bar states from choosing among eligible groups or limiting the schools students attend.

The governor's August announcement opening applications said the state expected to approve a first group by Sept. 30.

The national teachers unions oppose the program. In a June open letter, union presidents Randi Weingarten and Becky Pringle called it "a Trojan horse carrying near-universal K-12 private school vouchers into every state that participates." The state's release does not address that criticism, and the website of NEA-Alaska, the state teachers union, carries no statement on it.

Reviews continue on a rolling basis. The department expects to send its final 2027 list to the IRS by Dec. 1.