FRANKFORT, Ky. — Secretary of State Michael Adams signed House Bill 1 on Monday, officially enrolling Kentucky in a new federal education tax credit program created by Congress as part of the One Big Beautiful Bill Act.

The legislation enables Kentucky to opt into a federal initiative that offers a dollar-for-dollar federal tax credit — up to $1,700 annually — for individuals who donate to approved scholarship-granting organizations, according to the House Majority Caucus.

The measure, sponsored by Representatives Kim Moser and T.J. Roberts, allows funds to be used for a range of qualified education expenses, including private school tuition, out-of-district public school tuition, tutoring, support services for students with disabilities, and online course fees. Eligibility for students is limited to those from households earning at or below 300% of the area's median income.

The bill's passage followed a contentious legislative debate. Gov. Andy Beshear vetoed the measure in March, arguing it would divert public dollars from public schools, but Kentucky lawmakers voted on partisan lines to override his veto, with the House voting 77-14 and the Senate voting 31-5 to override the governor's objections.

The program is scheduled to take effect for the 2027 tax year, with the Kentucky Secretary of State's Office responsible for establishing regulations, registering scholarship organizations, and submitting a list of approved organizations to the federal government.

More than 25 states have already opted in, according to legislators who supported the bill. Supporters say the bill would allow K-12 students and their families to benefit from education assistance grants funded by a federal tax credit at no cost to the state and without the use of tax dollars. However, Democratic critics, including Rep. Adrielle Camuel from Lexington, argued the bill diverts public dollars away from public education.