For contributors
Learn how the Section 25F credit works and how an optional DFAS allotment may send an after-tax contribution to the program administrator.
See the tax credit and allotment detailsDepartment of WarMilitary Family Education Freedom Program
Education opportunity for military families
More opportunity for every military-connected student.
The Military Family Education Freedom Program helps eligible military-connected students access K–12 scholarships and gives eligible taxpayers a way to support that opportunity through a voluntary contribution.
K–12 scholarship opportunity
Voluntary, after-tax allotment option
Scholarships reviewed by an administrator
A clear path for families and contributors
Start with what you need to know.
The Program brings together two related opportunities: a potential tax benefit for eligible contributors and scholarship assistance for eligible students. Each has its own requirements and next steps.
For military families
Review the student, household, state, and expense requirements to understand whether a K–12 scholarship application may be right for your family.
Review scholarship eligibilityFor eligible taxpayers
A tax credit and an allotment are separate actions.
IRC Section 25F may allow an eligible taxpayer to claim a nonrefundable federal income-tax credit of up to $1,700 for qualifying cash contributions, beginning with tax year 2027.
The potential credit: Your contribution to the Military Family Education Freedom Program must meet federal requirements, including applicable participating-state requirements. The credit is nonrefundable and depends on your tax situation.
The allotment: A voluntary, after-tax payroll election directs a contribution to the program administrator. It does not automatically reduce tax withholding.
Your tax choices: Any withholding change is separate. DFAS does not determine tax-credit eligibility or provide individual tax advice.
Before you contribute
- Confirm that the qualified Scholarship Granting Organization administering the Program is listed by a participating state for the relevant tax year.
- Consider your own tax circumstances; the credit is not guaranteed to equal your contribution.
- Review the approved DFAS instructions for your pay population before making an allotment election.
- Keep the administrator’s contribution records and follow current IRS guidance when filing.
Important: The $1,700 limit applies to an individual taxpayer’s potential credit. It does not set a cap on the scholarship assistance a family may receive.
For military-connected families
Scholarship support for eligible K–12 students.
Scholarship decisions are made by the program administrator under Section 25F, applicable state requirements, and published Program rules. Families should check current state availability before applying.
Who may qualify
Students must meet federal eligibility requirements. These generally include being eligible to enroll in a public elementary or secondary school and living in a household within the applicable income limit, generally no more than 300% of area median gross income.
What to expect
Applications will be reviewed for student and household eligibility, state availability, and qualified expenses. Prior recipients and eligible siblings receive statutory priority where applicable.
2027 scholarship timeline
Application period open
Scholarship decisions
Family scholarship acceptance
Scholarship disbursement
Please note: A contribution cannot be reserved for a named student, and contributing does not guarantee a scholarship for the contributor’s family. The administrator makes award decisions using the program’s rules.
Next steps
Get ready to learn more or apply.
The 2027 application period runs from January through June 15. Official allotment instructions, participating-state information, and the administrator’s application link will be posted here when available. Check the current requirements before making a contribution or submitting an application.
Review eligibility informationQuick answers
Frequently asked questions
Will every contributor receive the full $1,700 credit?
No. The credit is nonrefundable, subject to Section 25F and state-list requirements, and depends on individual tax circumstances. Review IRS guidance or consult a qualified tax professional.
Does a DFAS allotment change my tax withholding?
No. The allotment is a voluntary after-tax contribution. Any change to tax withholding is a separate decision made by the taxpayer.
Does contributing guarantee a scholarship for my child?
No. Contributions cannot be earmarked for a particular student. The administrator reviews applications and awards scholarships under applicable rules.
Can a family receive more than $1,700 in scholarship assistance?
The $1,700 limit applies to the contributor’s potential annual tax credit, not to the amount of scholarship assistance a family may receive. Awards remain subject to eligibility and program rules.