Federal school choice program included in U.S. House budget reconciliation bill
A federal bill is cause for hope for 15,000 low-income Illinois students who lost their private school scholarships in 2023. That’s when teachers unions got state lawmakers to kill the Invest in Kids program.
Illinois students are one step closer to benefitting from a federal school choice program being considered as part of “The One, Big, Beautiful Bill.” House Republicans included the Educational Choice for Children Act in the budget reconciliation bill released May 12.
If enacted, Illinois families and those across the nation would benefit from K-12 scholarships for low-income students to attend private schools or pay other education expenses while remaining in public schools.
The bill is cause for hope for the 15,000 low-income Illinois students whose private school scholarships were taken away when teachers unions pressured state lawmakers in 2023 to kill the Invest in Kids program. That made Illinois the only state to work against the national movement toward letting parents choose their children’s schooling.
What is the Educational Choice for Children Act?
The Educational Choice for Children Act is a federal tax-credit scholarship program which would provide K-12 scholarships to eligible students across the country. Taxpayers would receive a dollar-for-dollar federal tax credit up to the greater of $5,000 or 10% of their income for donations to non-profit scholarship granting organizations, or tax-exempt organizations providing scholarships to students.
In other words, no federal money would be directed toward scholarships, but private individuals would be granted tax credits for donating. The program would be limited to $5 billion in tax credits each year for four years, with $10 million being allocated specifically to each state, meaning minimal impact on foregone tax-revenue overall.
Recipients of the donated funds would be limited to low-income students whose family household incomes were at or below 300% of the median income level in their area. The program’s goal is to “expand educational freedom and parent choice to families unable to afford alternative schooling options.”
The funds aren’t tied directly to attending private schools. In fact, recipients could attend public school or homeschool and use the funds for other expenses. That includes curriculum or books, online educational materials, tutoring or additional educational classes, fees for advanced placement exams or college admission exams, fees for dual enrollment and educational therapies for students with disabilities.
Illinois bucked national trends in November 2023 when lawmakers made Illinois the only state to roll back the state’s tax-credit scholarship program. But if the federal tax-credit scholarship program is enacted, low-income Illinois students could once again benefit from tax-credit scholarships to attend private schools or access additional educational support.
As they did in Illinois, teachers unions are trying to push the narrative that a donation-driven program somehow takes money from public education. The National Education Association has actively opposed the bill, claiming education choice for children is bad and locking them into lackluster public schools is good.