Treasury Department preview of tax credit scholarship rules suggests limited role for states

The Treasury Department's preview of federal tax credit scholarship rules indicates states will not be able to impose additional requirements on scholarship groups, contradicting earlier statements by Education Secretary Linda McMahon. Deputy Assistant Secretary Kevin Salinger emphasized states cannot set 'substantive' rules more restrictive than federal law, which may challenge Democratic governors' plans to shape the program. The scholarship program, set to launch in 2027, allows tax credits for donations to nonprofits providing educational vouchers.