By Dr. Tayyab Yunus
Executive Director, South Florida Muslim Federation
As a parent, I know that choosing an education for our children means thinking about their learning, their values, and what our families can afford. Many of our Federation members are Islamic schools. Our families also use other private schools, public schools, Florida Virtual School, and home education. Helping them understand available resources is part of building a stronger community.
A new opportunity deserves our attention: the Federal Scholarship Tax Credit, beginning in 2027. Florida has elected to participate, and Step Up For Students has announced its Step Up, Step Further Scholarship Fund.
The program connects two groups: donors who make qualifying contributions to approved scholarship organizations, and eligible students who receive educational assistance.
For families, the opportunity goes beyond tuition. Step Up lists potential uses including private school tuition, tutoring, special education services, books, curriculum, technology, and supplies. It describes support for public and private K–12 students and says families may be able to combine the new assistance with existing state scholarships, subject to program requirements.
Federal student eligibility includes being eligible to enroll in a public elementary or secondary school and having prior-year household income no higher than 300% of area median gross income. That is a local, family-size-adjusted measure. Scholarship organizations may apply narrower criteria, and eligibility does not guarantee an award.
For FLVS and homeschool families, the details matter. FLVS Full Time is a public school; FLVS Flex offers individual courses used by students in different educational arrangements, including home education. Ask the scholarship administrator how your child’s enrollment and intended expenses fit this new program. Homeschool families should obtain specific confirmation about qualifying expenses; existing Florida scholarship rules should not be assumed to govern this federal opportunity.
For donors, the program offers a new way to support education. Beginning January 1, 2027, qualifying cash gifts to approved scholarship-granting organizations may qualify for a federal credit of up to $1,700 per individual, or $3,400 for married couples filing jointly when both spouses qualify. The credit is nonrefundable and subject to tax-liability limits.
Those figures are donor credit limits, not promised scholarship amounts. Contributions cannot be reserved for your own child or another named student. A direct gift to a school or the Federation does not automatically qualify for this credit.
Our member schools should begin preparing now. I encourage each Islamic school to designate a staff contact, confirm participation and payment requirements with the scholarship administrator, and prepare to help families understand applications. Schools should also obtain written guidance before suggesting that donations can be directed to their students.
For parents, the next step is simple: follow Step Up’s federal scholarship updates and speak with your school. As of November 2, its federal program page does not list student application opening dates or award amounts. January 1 is the announced start for donations, not a confirmed date for families to receive funding.
Families should not have to discover opportunities like this by chance. When our schools and parents have clear information, they can plan with greater confidence and help our children thrive.
Information checked November 2, 2026. Federal implementation regulations remain proposed, and program details may change. Donors should consult their tax adviser about eligibility and limitations.
Additional source: Treasury and IRS proposed regulations, October 2, 2026.
