Student Funding

Use of Funds 

Donated funds provide tuition scholarships for eligible students to attend participating private schools. Funds can also be used for transportation costs for eligible special needs students. 

Funding Amount and Source 

 Students may receive scholarships for either the greater of $5,000, or 80% of the statewide average per-pupil expenditure as determined by the National Center on Education Statistics to cover all or part of the tuition, fees, and transportation costs of a participating private school. Scholarships are worth up to $25,000 for eligible students with special needs to cover all or part of the tuition, fees and transportation costs of a qualified school for eligible special needs students.  Total credits claimed cannot exceed $25 million, meaning roughly 9,300 students can participate, or 1% of Oklahoma’s K–12 student population. 

 (Last updated July 15, 2024) 

Student Eligibility

To qualify, a student must be a legal United States resident living in Oklahoma and eligible to attend a public school. They must also meet one of the following: (1) attend an Oklahoma public school with an Individualized Education Plan (IEP); (2) attend or live within the attendance zone of a public school designated “in need of improvement” by the State Board of Education; or (3) be a member of a household with an adjusted gross income not exceeding 300% of the level qualifying for the Free and Reduced-Price Lunch program (FRL) ($173,160 for a family of four in 2024–2025). Students with special needs who have received a qualifying diagnosis affecting learning from a clinical professional, or were provided services under an Individualized Family Service Plan (IFSP) through the SoonerStart program and determined to be eligible for district services, may also receive scholarships through the program. Once a student has received a scholarship, the student and any siblings in the same household remain eligible until high school graduation or they reach 21 years of age, whichever occurs first. 

(Last updated July 15, 2024) 

EdChoice Expert Feedback

Oklahoma’s tax-credit scholarship program provides the opportunity for thousands of families to access schools that best fit the needs of their students. Oklahoma’s tax-credit scholarship program for low- and middle-income students helps thousands of students access schools that are the right fit for them, but policymakers could do more to expand educational opportunity. Students are eligible to receive a scholarship if they are from a household earning up to 300 percent of the free and reduced-price lunch program (the equivalent of 555 percent of the federal poverty line, or $154,013 for a family of four in 2022–23) or attend or live in the attendance zone of a public school designated by the state as “in need of improvement.” Nearly 90 percent of Oklahoma students are eligible to receive a scholarship via this program. Statewide, less than one percent of students participate in one of Oklahoma’s private educational choice options (including the Lindsey Nicole Henry Scholarships for Students with Disabilities). The average scholarship size is about $2,600, which is only about 28 percent of the average expenditure per student at Oklahoma’s district schools, though the cap on scholarship values is somewhat higher ($5,000 for most students and $25,000 for students with special needs). Tax credits are worth 50 percent to 75 percent of the value of the contributions to scholarship organizations, but only $25 million in tax credits are available annually, which is equivalent to only 0.84 percent of Oklahoma’s total K–12 revenue. To expand access to educational choice, Oklahoma policymakers should significantly increase the amount of available tax credits and expand eligibility to all students. The program could also be converted into an education savings account to ensure that all students have access to the education that’s the right fit for them, whether private school or a customized course of education. Oklahoma’s scholarship program generally avoids unnecessary and counterproductive regulations. (Last updated December 18, 2023)

Rules and Regulations

Program Guidelines

• Income Limit: 300% x FRL
• Prior Year Public School Requirement: None
• Enrollment Cap: None
• Scholarship Cap: $5,000 (Per Eligible Student)/ $25,000 (Per Eligible Special Needs Student)
• Testing Mandates: None
• Credit Value: 50% of contribution; 75% if a commitment for equal contribution for the next year is made
• Per Donor Credit Cap: $1,000 (single) / $2,000 (married) / $100,000 (business)
• Total Tax Credit Cap/Budget Cap: $25 million each for donations to eligible SGOs and for donations to benefit public schools, public school foundations, or educational improvement grant organizations
• Special Needs Pathway: Pathway

Participant and Family Guidelines

• Education Requirements: N/A
• Parent Supplemented Funds/Scholarships: Allowed
• Miscellaneous: N/A

Education Provider Guidelines

• Accreditation/Approval: State
• Employment Standards:
  • Background checks
  • Bachelor’s degrees for teachers or 3+ years of experience
• Nondiscrimination: State
• Calendar/Curriculum/Attendance: N/A
• Financial: Demonstrate fiscal soundness
• Miscellaneous: Report academic progress to parents

Scholarship Organization Guidelines

• Scholarship to Contribution Ratio: Use at least 90% of contributions for scholarships
• State Reporting: Maintain full and accurate records on contributions, expenditures and other documentation required by the state
• Financial: Files financial documents with state tax commission and reports to the governor and legislature
• Award Priority: Spend a portion of expenditures on scholarships for students who qualify for the Free or Reduced-Price Lunch program ($55,500 for a family of four in 2023⁠–⁠⁠24) in an amount equal or greater to the percentage of eligible low-income students in the state
• Miscellaneous:
  • A 501(c)(3) entity and registered as an SGO with the state
  • Ensure scholarships are portable during the school year and can be used at any qualified school that accepts the eligible student
  • Conduct background checks on employees and board members

(Last updated December 18, 2024)

Governing Statutes

Okla. Stat. tit. 68 § 2357.206 

(Last updated January 3, 2025) 

Legal History

No legal challenges have been filed against the program. 

(Last updated July 15, 2024)