The Trump administration is proposing a federal tax credit for donations made to groups offering scholarships for private schools, apprenticeships or other educational programs.
Education Secretary Betsy DeVos is unveiling the plan Thursday, while legislation is being proposed by Republicans in the House and Senate.
The proposal, called the Education Freedom Scholarships and Opportunity Act, is DeVos' latest attempt to promote school choice.
It would provide up to $5 billion a year in dollar-for-dollar tax credits for individuals or businesses who donate to certain groups that provide scholarships.
Education Department officials say states would decide details including which scholarship groups are covered and which students are eligible.
Similar programs exist in 18 states. Supporters say it gives students better choices, while critics have called it a "backdoor voucher program."