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House Republicans Advance $5 Billion Federal School Voucher Program

The proposal, embedded in the GOP budget reconciliation bill, faces scrutiny over its impact on public schools and lack of accountability measures.

A construction worker looks on as educators and various organizations from across the state of Tennessee march to the Amazon headquarters in downtown Nashville in protest of Governor Bill Lee's school voucher program on March 12, 2024, in Nashville, Tennessee.
U.S. President Donald Trump is surrounded by local schoolchildren as he delivers remarks at a school choice event at the White House in Washington, U.S. May 3, 2017.
Nebraska Rep. Adrian Smith says the school voucher proposal "fits well within the purview of reconciliation." (Bill Clark/CQ Roll Call file photo)
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Overview

  • The Educational Choice for Children Act, allocating $5 billion annually in tax credits for private school scholarships, has been incorporated into the GOP budget reconciliation package.
  • The program offers a dollar-for-dollar federal tax credit for donations to scholarship nonprofits, capped at $5,000 or 10% of taxable income.
  • Critics warn the measure could divert significant funding from public schools, disproportionately affecting rural and low-income areas with limited private school access.
  • The bill lacks provisions requiring private schools accepting vouchers to hire certified teachers or provide special education services, raising accountability concerns.
  • If passed, the legislation would bypass state-level rejections of school vouchers and expand access to all 50 states, with only a simple Senate majority needed for enactment.