America has a literacy crisis. Two-thirds of public school third graders are reading below grade level, when a child is supposed to transition from learning to read to reading to learn. The gap takes root in first grade. If a child isn’t reading on grade level at the end of first grade, they rarely catch up. The literacy gap follows students for life, affecting their education, income, and opportunity. But with the right support at the right time, every child can become a confident, fluent reader. Research from Johns Hopkins shows that 85% of students who read at grade level by the end of first grade stay on track through third grade. In contrast, only 12% of those who fall behind in first grade manage to catch up later.
We know which kids need help. We know when they need it. And we know how to deliver it. Daily one-to-one tutoring grounded in the Science of Reading, delivered alongside classroom teachers, has been proven to raise the share of first graders reading on grade level from 6% to 48% in a single year. What we’ve been missing is a funding model powerful enough to do this at national scale.
This morning, the IRS published proposed regulations implementing the Federal Scholarship Tax Credit. Starting January 1, 2027, the Federal Scholarship Tax Credit (FSTC) allows individual taxpayers to donate up to $1,700 per year to an approved Scholarship Granting Organization (SGO) and receive a direct, dollar-for-dollar reduction in their federal tax bill. Unlike a charitable deduction, this is a credit: a donation of up to $1,700 that would otherwise go to the IRS instead goes to a child’s literacy tutor. Married couples filing jointly can each claim up to $1,700, for a combined household credit of up to $3,400. Here is what today’s rules would establish:
- Tutoring is explicitly confirmed. The proposed rules include a dedicated provision for “individual academic tutoring and special needs services,” confirming that FSTC contributions to EducationSuperHighway will fund daily, one-to-one reading tutoring for public school first graders.
- Any taxpayer in America can give, regardless of their state. The FSTC is a Federal credit. A taxpayer in any state can contribute to EducationSuperHighway, even if their own governor hasn’t opted in. The 31 opted-in states determine where scholarships are awarded but not who can give.
- Married couples can give up to $3,400 combined. Each spouse can claim up to $1,700 independently on a joint return. At scale, that doubles the household giving opportunity for families and meaningfully expands the pool of funds available for public school literacy tutoring scholarships.
- Employers can make this effortless for their employees. After-tax payroll deduction is explicitly listed as a qualifying contribution method. Employees can spread their giving across the year through payroll, adjust their W-4 to offset the impact, and redirect what they already owe in taxes, with no reduction in take-home pay.
- Governors who opt in unlock the credit for students in their state. A state’s participation determines where scholarship funds can be awarded. In every opted-in state, contributions can fund tutoring for that state’s public school first graders. EducationSuperHighway is applying to be listed as an SGO in every state that has opted in.
- Donor privacy is fully protected. Donors don’t need to provide their Social Security Number to EducationSuperHighway. The IRS has designed a unique donor number system specifically to make giving simple, private, and secure.
We have the framework. We have the evidence. We have one goal: to raise Federal Scholarship Tax Credit donations to fund literacy tutoring scholarships for public school first graders who are reading below grade level. The IRS’s own projections estimate that the FSTC will generate $26 billion in annual contributions and fund up to 2 million scholarships per year by 2030. We need your help to ensure the program supports public school kids.
Our Mission Makes Us Different.
Most organizations participating in FSTC programs are directing funds to private school students. EducationSuperHighway is different: we are the first national non-profit building an FSTC program exclusively for public school literacy tutoring scholarships. Our scholarship fund provides daily one-to-one tutoring for public school first graders, delivered by certified literacy tutors working alongside classroom teachers to reinforce the Science of Reading instruction students are already receiving.
We know what it takes to close a national gap in American public education. We’ve done it before. When we started EducationSuperHighway, only 10% of schools had the internet speeds students needed to learn. We closed that gap, connecting 99.3% of America’s public schools to high-speed internet. We know how to build national coalitions that get results for public schools. We are doing it again, but this time for literacy.
Today’s IRS proposed rules give us the framework to close America’s public school literacy gap. Now we need to build the coalition.
For governors in states that have already opted in: today’s rules give you the certainty you need to finalize your SGO lists. For governors in states that haven’t yet opted in: the window is still open. Opting in costs your state nothing and lets every taxpayer redirect their federal taxes into literacy scholarships for your public school first graders. This is the easiest education policy decision you can make right now.
For employers: a payroll deduction program for FSTC contributions is one of the most powerful and lowest-friction benefits you can offer your employees. The credit is dollar-for-dollar: every $1 an employee donates (up to $1,700) reduces their federal tax bill by $1. The credit belongs to the employee, and the contribution flows directly from them to EducationSuperHighway. Employees can adjust their W-4 withholding so the benefit works year-round, not just at tax time. Our platform makes FSTC giving effortless: one secure authorization connects your payroll system, and EducationSuperHighway handles enrollment, receipts, and employee support from there. Get in touch to learn more.
For financial advisors and CPAs: your clients who owe federal taxes need to know about this. A $1,700 contribution to EducationSuperHighway comes right back as a $1,700 reduction in their federal tax bill. Married couples can each claim up to $1,700, for a combined household credit of $3,400. They can make contributions for the 2027 tax year through December 31, 2027. Start that conversation now.
For school district leaders: literacy tutoring scholarships fund daily one-to-one reading support for your first graders. EducationSuperHighway’s tutoring partners work alongside your teachers to reinforce the Science of Reading instruction already happening in your classrooms, at no cost to your district. We are currently selecting our tutoring partners for 2027, prioritizing organizations with a proven track record of delivering evidence-based, Science of Reading-aligned tutoring to public school first graders. Contact us to explore a partnership in your community.
For parents of public school first graders: if your child is reading below grade level, this program was built for them. Talk to your school about partnering with EducationSuperHighway, and ask your employer about setting up payroll giving to fund literacy scholarships in your community. Learn more and sign up for updates.
For donors ready to give: you don’t have to wait for your employer or your advisor. Starting January 1, 2027, you can redirect up to $1,700 of your federal taxes directly into a literacy tutoring scholarship for a public school first grader at zero out-of-pocket cost. Sign up now to be notified the moment contributions open.
