The 2025 reconciliation bill, signed into law by President Trump on July 4, 2025, included a provision that allows states to opt into participating in a federal tax credit scholarship program. This program would provide a dollar-for-dollar federal tax credit, up to $1,700 annually, for donations to scholarship granting organizations (SGOs) to benefit students who are enrolled in public and private K-12 education. This brief uses evidence on similar state tax credit scholarships, on federal tax rulemaking, and on the regulation of charitable giving to answer the following questions: (1) How many people might donate to an SGO, and how much federal revenue could be diverted?; (2) How would the federal tax credit affect similar state tax credit programs?; (3) What state policies and practices are typically needed to support SGO operation?; and (4) What resources do states currently have to oversee charities, and SGOs specifically, that operate in their state? [This report was funded by the Resource Equity Funders Collaborative.]