Oklahoma boosts school choice tax credit cap by $25 million in response to rising demand

Oklahoma will raise the cap on its tax credit-based school choice program by $25 million  – enough to fund about 4,000 additional students – for the 2026-27 school year as demand continues to rise.

Gov. Kevin Stitt and the Republican-controlled Legislature approved the funding, which will boost the program’s capacity closer to 45,000 students. Nearly 40,000 students are using the Oklahoma Parental Choice Tax Credit this year.

Stitt, a Republican, said he was “proud” to sign the expansion, along with other education bills, including a bell-to-bell cellphone ban in public schools.

“HB 3705 increases the total credits available under the Parental Choice Tax Credit Program, expanding opportunities for parents to choose the best education for their kids,” Stitt posted Wednesday on X.

The Sooner State created the tax credit in 2023 to empower parents to find the education that best fits their child. Parents receive credits of $5,000 to $7,500 per child to use toward private school tuition. Lower- and middle-income families are prioritized, accounting for 72% of recipients.

At the same time, the Legislature added $1 billion in public school funding, and public school revenue from all sources has risen $3 billion since 2018, the Oklahoma Council of Public Affairs reports.

Still, House Minority Leader Cyndi Munson, D-Oklahoma City, said public schools are going “without the critical financial investments” necessary to raise their low national ranking.

But state data shows public schools had nearly $9.6 billion in revenue in 2024-25 and spent an average of nearly $15,000 per student. A survey of private schools in the state pegged their average tuition at $11,274 per year.

School choice demand appears to be high, with nearly 27,000 applications being received on the first day of the application window, March 16. Applications can be submitted through June 15.