🛝 School Choice Tax Credit, SEL Rebrand, Spelling Boosts Reading

Welcome to Playground Post, a bi-weekly newsletter that keeps education innovators ahead of what's next.

This week's reality check: The federal government just launched a $1,700 tax credit that could reshape school choice nationwide, if states opt in. Meanwhile, districts are quietly rebranding SEL to dodge political fights, and new research shows we've been overlooking one of the simplest ways to improve reading.

💎 Data Gem

Support for classroom AI tools is declining among Americans. In 2025, 49% of surveyed adults supported using AI to help teachers prepare lesson plans—down sharply from 62% the year before, according to a new national survey.

What the New Federal Tuition Tax Credit Means for School Choice?

The President signed a $1,700 federal tax credit into law this summer as part of the "One Big Beautiful Bill Act." 

It lets taxpayers contribute to scholarship granting organizations (SGOs) and subtract the full amount from federal taxes they owe.

The program launches in 2027, but the details are still being written by the Treasury Department.

What we know: SGOs must be 501(c)(3) nonprofits that devote at least 90% of income to scholarships, serve at least 10 students at more than one school, and support households earning no more than 300% of the area's median income.

Funds can be used for tuition, tutoring, room and board, school supplies, special education services, and extracurriculars. 

The bill doesn't specify whether public school students are eligible - that's up to Treasury rulemaking.

The catch? 

States must opt in annually by January 1. Participation could fluctuate year to year based on state politics.

The unknowns are significant. 

Will this erode existing state tax credit programs? How many taxpayers will actually participate? What requirements will the Treasury add?

For education innovators, this represents a fundamental shift in federal involvement in school choice. If even half the states opt in, it could create substantial new demand for scholarship management platforms, eligibility verification tools, and compliance software that works across multiple state frameworks. 

The opportunity depends entirely on state participation rates and Treasury rulemaking, both still uncertain.

SEL by Another Name? Political Pushback Prompts Rebranding

Sixteen percent of educators said in an EdWeek Research Center survey that their school or district now refers to social-emotional learning by another name while continuing to teach the same concepts.

The most popular alternatives? 

"Character education," "life skills," and "communication skills."

Conservative activists have challenged SEL since 2021, claiming it indoctrinates students with liberal values. 

The U.S. Department of Education released guidance this spring arguing SEL can discriminate against students. Moms for Liberty launched a nationwide campaign against it.

Yet 46% of educators still use "social-emotional learning" all the time. 

And the number of principals reporting their schools use an SEL program has actually increased despite the political pushback.

Districts in the South and suburban areas are more likely to rebrand, with one in five saying they sometimes or always use alternative terms. 

Four percent ended use of SEL concepts altogether.

The bigger question is whether renaming is worth the effort. Some experts argue it's effective for lowering temperature in heated situations but doesn't address underlying trust issues. 

Others worry education will become a constant game of terminology shifts as national narratives spread rapidly through social media.

For companies building SEL tools and curricula, the naming uncertainty creates a branding challenge. Products explicitly labeled "SEL" may face adoption barriers in certain districts, while generic terms like "life skills" or "character development" might face less resistance.

Why Teaching Spelling Can Boost Students' Reading Skills

A new meta-analysis of 59 studies found that spelling instruction doesn't just improve spelling - it also boosts reading abilities for K-9 students with or at risk for learning disabilities.

The research examined what kinds of spelling lessons deliver the greatest returns.

Lessons focused on letter-sound connections were the only type that positively affected word-reading. 

Teaching students to memorize whole words improved their ability to spell those specific words but didn't transfer to general spelling ability.

Multi-approach interventions, combining letter-sound connections with spelling rules, had small positive effects on overall spelling ability.

More than 25 states have passed evidence-based reading laws in the past five years, but most don't explicitly mention spelling. Research shows teachers of upper elementary students with reading disabilities only spend about 2% of instructional time on spelling.

For curriculum developers and edtech companies, this research identifies a specific instructional gap. States are mandating evidence-based reading instruction but implementation often overlooks spelling. 

Products that integrate phonics-based spelling instruction into existing literacy programs, especially those serving students with dyslexia or reading disabilities, could address an underserved need backed by growing research evidence.

⚡️More Quick Hits

This week in education:

Supreme Court term preview — K-12 leaders should watch First Amendment disputes and the Court's shadow docket for potential ripple effects on district policy

Book bans becoming normalized — PEN America finds book restrictions are increasingly standard practice in districts, signaling sustained content-policy fights ahead

Teachers share AI workflows — Educators describe practical approaches for safe, limited AI use in writing instruction

Hour of Code becomes Hour of AI — Code.org shifts its flagship campaign to AI literacy with student-friendly activities planned for December's CSEd Week

📚 Weekend Reads

Monthly roundup of resources you might like:

• Academic Recovery Still Elusive — Data showing students need 4.8 additional months in reading and 4.3 months in math to reach pre-pandemic levels.

• Current Term Enrollment Estimates — Spring 2025 undergraduate enrollment up 3.5% to 15.3 million students, with community colleges leading the resurgence at 5.4% growth

• Educator Pay Rankings 2024-25 — State-by-state analysis showing average teacher salary reached $74,177, yet inflation has teachers earning 5% less than a decade ago

• Public Confidence in Schools — Record-low public approval with only 13% giving schools an A or B grade, and 59% of parents preferring private school options with public funds

To stay up-to-date on all things education innovation, visit us at playgroundpost.com.