Following Governor Larry Rhoden’s announcement that South Dakota will participate in the federal education tax credit program established under President Donald Trump’s “One Big Beautiful Bill,” education advocates are urging caution. Stephanie Hageman, president of the South Dakota Education Association, expressed concern about diverting resources from public schools and the lack of oversight for some nontraditional programs stating “We don’t want to support anything that lacks accountability or accreditation,” Hageman added that public schools remain the most equitable option for all students.
The initiative aims to expand school choice by allowing individuals to donate up to $1,700 to approved scholarship organizations in exchange for a 100% nonrefundable tax credit.
Governor Rhoden says the move will highlight alternative education options such as classical schools, micro-schools, and homeschooling.
The program is expected to launch in 2027. School districts in Sioux Falls and Rapid City say they are awaiting more details and are interested in how the program might benefit public school families.
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