Oklahoma Tax Commission data released last month shows 90% of students receiving state assistance for private school already attended those schools before the funding arrived. Only 3,700 of the 39,485 approved students transferred from public education.
The revelation has reignited questions about who benefits from Oklahoma’s three separate private school funding programs and whether families struggling to afford tuition actually get help.
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How Much Money Is Available Right Now
Oklahoma operates three distinct programs that put public dollars toward private education. Each has different rules, application processes, and funding amounts.
The Parental Choice Tax Credit represents the largest investment at $250 million annually. This refundable credit provides $5,000 to $7,500 per student based on household income. Any Oklahoma family qualifies regardless of how much they earn.
Lindsey Nicole Henry Scholarships specifically serve special needs students and select populations, offering $4,196 to $22,236 per child depending on their documented needs.
The Equal Opportunity Education Scholarships work through donations to approved organizations. Individuals and corporations fund these scholarships while receiving state tax credits up to 75% of their contribution.
All three programs can be combined under specific circumstances, potentially covering full tuition plus additional educational expenses.
Parental Choice Tax Credit: Income Tiers and Application Process
The credit scales based on household adjusted gross income from two years prior. Families applying during the current 2025-26 school year used their 2023 federal tax returns.
Credit amounts by income bracket:
- $7,500 per child for households earning $75,000 or less
- $7,000 per child between $75,001 and $150,000
- $6,500 per child between $150,001 and $225,000
- $6,000 per child between $225,001 and $250,000
- $5,000 per child above $250,000
Families below the $150,000 threshold receive priority processing if they apply within 60 days of the application window opening. For 2025-26, that priority period ran from February 18 through April 19, 2025. The general application period closed July 15, 2025.
Private schools must be physically located in Oklahoma and hold accreditation from the State Board of Education or another recognized accrediting association. Schools generate an Enrollment Verification Number for each student, which parents need to complete their application through the Oklahoma Tax Commission’s OkTAP system.
The state sends payments directly to schools in two installments, typically in August and January. Checks are made payable to the parent, who must appear at the school to endorse them.
What the Numbers Show About Who Benefits
Average tuition at Oklahoma private schools ranges from $7,000 to $7,432 annually, according to data from Private School Review and the Education Data Initiative. That sits well below the $13,605 per-pupil funding Oklahoma public schools receive.
Students qualifying for the maximum $7,500 credit account for 28.4% of all recipients. These come from households earning $75,000 or less annually or receiving government assistance like SNAP or Medicaid. The state has directed $79.6 million toward this lowest-income group.
Critics point out that families already paying private school tuition before the program launched received the same financial benefit as those newly able to afford it. State Representative Mark McBride, who voted for the bill in 2023, told KFOR he regrets that decision.
“I told them exactly what was going to happen,” McBride said, noting some private schools raised tuition to match credit amounts after the program launched.
Special Needs Students Have Separate Scholarship Path
The Lindsey Nicole Henry program predates the general tax credit by more than a decade, launching in 2011. It serves approximately 1,500 students annually with scholarships ranging from roughly $4,200 to more than $22,000.
Eligibility requirements include:
- Having an Individualized Education Program or Individualized Service Plan
- Meeting eligibility standards under the Individuals with Disabilities Education Act
- Being a military dependent under permanent change of station orders
- Previous foster care placement or adoption from state custody
- Participation in Oklahoma’s SoonerStart early intervention program
- Out-of-home placement through the Office of Juvenile Affairs
A major change took effect last July when Governor Kevin Stitt signed Senate Bill 105. The law removed a requirement that students attend public school for one year before qualifying. Families can now apply immediately for children entering pre-K through 12th grade.
The application deadline falls on December 1 each year through the Oklahoma State Department of Education. Parents can combine LNH scholarships with the Parental Choice Tax Credit, but schools must apply LNH funds first to prevent overpayment issues.
Donation-Based Scholarships Through Private Organizations
The third program runs entirely on private contributions that generate tax credits for donors. Scholarship granting organizations collect these donations and distribute awards to qualifying students.
Students must meet income requirements or attend schools designated as needing improvement by the State Board of Education. Those with an IEP also qualify. A family of four earning up to $173,160 qualifies for a full scholarship.
Awards provide up to $8,000 per student, or 80% of statewide per-pupil expenditure. Special needs students can receive up to $25,000 to cover therapies, transportation, and specialized instruction.
Donors receive a 50% state tax credit for single-year gifts or 75% for two-year commitments. Individuals can claim up to $1,000, married couples filing jointly up to $2,000, and qualified businesses up to $100,000. The program has a $50 million annual cap, raised from just $5 million in 2022.
Several organizations operate as scholarship granting entities, including Opportunity Scholarship Fund, Tax Credit Scholarship, and Crossover Scholarship Fund.
Political Fight Over Spending Cap Intensifies
Governor Stitt pushed lawmakers last year to eliminate the $250 million cap on the Parental Choice Tax Credit. That effort failed, but Senate Bill 1389 filed for the 2026 legislative session proposes allowing 20% increases when at least 90% of available funds get claimed.
State Senator Julie Daniels, who authored the bill, called it a more fiscally responsible approach than removing the cap entirely.
The Oklahoma Tax Commission reported nearly $1 million in unused credits remained available for 2025-26 as the application deadline approached. That represents less than 0.4% of the total allocation.
Democratic legislators have introduced repeal bills, though Representative Jacob Rosecrants acknowledged the effort faces long odds in the Republican-controlled statehouse. The GOP holds supermajorities in both chambers.
Public school advocates argue the program diverts resources from districts serving 90% of Oklahoma students. The state provides an average of $13,605 per public school student compared to private school credits worth $5,000 to $7,500.
Getting Started With Any of These Programs
Families interested in the Parental Choice Tax Credit need to start with their chosen private school. Schools must register with the Oklahoma Tax Commission and hold proper accreditation before generating Enrollment Verification Numbers for students.
The application requires the household’s federal tax information from two years prior. Families receiving government benefits don’t need additional income documentation.
Homeschool families qualify for a separate $1,000 per student credit under a $5 million cap. This covers curriculum materials, testing fees, tutoring services, and online learning programs. Unlike the private school credit, homeschool families claim this directly on their Oklahoma income tax return using Form 591-D.
For Lindsey Nicole Henry Scholarships, parents must first secure enrollment at an approved private school, then complete the application through the PCG Scholar Portal by December 1. Contact Crystal Royalty at the State Department of Education at 405-521-2372 for assistance.
Equal Opportunity scholarships require applying directly through scholarship granting organizations. Each maintains its own application process and deadline.
Senate Bill 684, which took effect in July, requires private schools to submit annual enrollment and tuition data by June 15. Schools participating as of April 15, 2025 have until March 1, 2027 to meet updated accreditation standards if they haven’t already.
What the 2026-27 School Year May Bring
Application windows for the next school year haven’t been announced yet, though they typically follow the same February through July timeline. Some private schools, including Bishop Kelley High School in Tulsa, began accepting Enrollment Verification Number requests in January 2026 for the upcoming academic year.
The debate over funding levels and eligibility will continue through the current legislative session. Whether Oklahoma expands, maintains, or reduces support for private education depends on how lawmakers weigh competing demands for education dollars against rising program participation.
