A new national school voucher program allocates up to $1,700 in federal tax credits for individuals who donate to organizations that provide private and religious school scholarships. (Photo by Getty Images)

WASHINGTON — A national private school voucher program is now law, though the school choice initiative comes with a huge caveat. States also choose — whether or not to participate. 

It’s a setback for advocates who hoped to see the program — baked into the mega tax and spending cut bill President Donald Trump signed into law on July Fourth — mandated in all 50 states.

The permanent program, which starts in 2027, saw several versions between the House and Senate before getting to Trump’s desk as part of congressional Republicans’ massive reconciliation package.

Robert Enlow, president and CEO of EdChoice, touted aspects of the program, but said his organization would have preferred to see a 50-state program, rather than allowing states to opt in or decline. 

“I think I’m really worried about that because this is seen as a sort of more partisan issue and as a result, what would make a governor in a blue state say, ‘Let me bring in school choice’?” said Enlow, whose nonprofit focuses on advancing school choice options.

Still, Enlow described the program as “just another step along the way of giving parents more choices.”

Who will join?

It remains to be seen which states will participate, including those with their own voucher programs already underway.

Jon Valant, a senior fellow at the nonpartisan Brookings Institution, said he’s “not clear on how states will shake out on the question of whether or not to participate.”

“I’m sure the vast majority of, really, all red states will participate in this thing, but I don’t know what’s going to happen in blue and purple states,” said Valant, who also serves as director of the think tank’s Brown Center on Education Policy.

Despite that unknown, Valant said that states “do have some incentive to participate because if they don’t, then they’re potentially losing access to some funds that they wouldn’t otherwise get.”

How the program works

The program allocates up to $1,700 in federal tax credits for individuals who donate to organizations that provide private and religious school scholarships.

There is also no cap to the cost of the program, unlike earlier versions seen in both chambers of Congress.

The scholarship funds would be available to families whose household incomes do not exceed 300 percent of their area’s median gross income.

More than 138 million people could be eligible to make use of the tax credit in 2027, according to an analysis from the Institute on Taxation and Economic Policy.

However, Carl Davis, research director of the left-leaning think tank, notes in the analysis that “most of those people will not contribute” given the necessary paperwork and vouchers’ unpopularity with the public.

A state’s program participation will be decided by its governor or “by such other individual, agency, or entity as is designated under State law to make such elections on behalf of the State with respect to Federal tax benefits,” according to the final bill text.

The GOP’s school choice push

The umbrella term “school choice” centers on alternative programs to one’s assigned public school.

The effort has sparked controversy, as opponents say these programs drain critical funds and resources from school districts, while school choice advocates describe the initiatives as necessary for parents dissatisfied with their local public schools.

Trump and congressional Republicans have made school choice a major part of their education agenda.

The program also reflects a sweeping bill that GOP Reps. Adrian Smith of Nebraska and Burgess Owens of Utah and Sen. Bill Cassidy of Louisiana reintroduced in their respective chambers earlier this year.

‘Very little quality control’

Valant, of the Brookings Institution, expressed several concerns about the program, saying “there’s very little quality control, transparency or accountability for outcomes in this program, and it’s potentially a major use of public taxpayer funds.”

He said he doesn’t see anything in the program’s text that “protects against widespread waste, fraud and abuse and from programs and schools that aren’t providing much value at all to students from continuing to get a large amount of funding.”

The program also came as Trump and his administration continue to dramatically redefine the federal role in education.

Trump’s fiscal 2026 budget request calls for $12 billion in spending cuts to the Education Department. A summary from the department said this cut “reflects an agency that is responsibly winding down.”

Billions on hold

The administration has also taken heat for its recent decision to put on hold $6.8 billion in federal funds for K-12 schools.

Sasha Pudelski, director of advocacy at AASA, The School Superintendents Association, said that a time when the administration is withholding billions of dollars in these funds for public schools, “the idea that we’re going to spend an unlimited amount of tax dollars to support private and religious schools is unthinkable, unimaginable — it’s horrific.”

“This is yet another handout to wealthy Americans who can already afford to send their children to private religious schools and at a cost that comes from tax dollars being deferred away from public education that serve the poorest and neediest students in America,” added Pudelski, whose organization helps to ensure every child has access to a high quality public education.

A proposal in the U.S. House would allocate $5 billion a year in tax credits for people donating to organizations that provide private and religious school scholarships. (Getty photos)

WASHINGTON — A national school voucher program got a step closer to becoming law Wednesday, as school choice continues to take heat across the United States.

The proposal in the U.S. House would allocate $5 billion a year in tax credits for people donating to organizations that provide private and religious school scholarships and is baked into the Ways and Means Committee’s piece of a massive reconciliation package to fund President Donald Trump’s priorities.

The tax credit provision largely reflects the Educational Choice for Children Act — a sweeping bill that GOP Reps. Adrian Smith of Nebraska, Burgess Owens of Utah and Sen. Bill Cassidy of Louisiana reintroduced in their respective chambers earlier this year.

The tax-writing committee advanced its measure Wednesday in a party-line vote. Republicans are using the complex reconciliation process to move the package through Congress with simple majority votes in each chamber, avoiding the Senate’s 60-vote legislative filibuster, which would otherwise require bipartisanship.

“School choice” is an umbrella term centering on alternative programs to one’s assigned public school. While proponents have argued that school choice programs are necessary for parents dissatisfied with their local public schools, opponents say these efforts drain critical funds and resources from school districts.

At a press conference Wednesday, Rep. Elise Stefanik praised the Educational Choice for Children Act, which she cosponsored in the House.

The New York Republican said the bill is “a transformative piece of legislation that will expand educational opportunities for children across our nation.”

“For too long, students, especially those from underserved communities, have been trapped in failing school systems,” she said, adding that “school choice gives students the opportunity to succeed” and “is the great equalizer.”

$20 billion tax credit over 4 years

The tax panel’s proposal includes a $20 billion total tax credit, which would be made up of a $5 billion tax credit annually between 2026 and 2029. 

The scholarships would be available to students whose household incomes do not exceed 300 percent of the median gross income of their area.

“This is opening the door to the federal government subsidizing a secondary private system of education that gets to pick and choose who it educates and how it educates kids,” Sasha Pudelski, director of advocacy at AASA, The School Superintendents Association, told States Newsroom.

The association helps to ensure every child has access to a high quality public education.

“​​I think it’s really important for folks to understand that we are opening this door for the first time to this kind of subsidy,” Pudelski said.

The provision also comes as Trump has made school choice a major part of his education agenda.

He signed an executive order in January that gave the U.S. secretary of Education two months to offer guidance on how states can use “federal formula funds to support K-12 educational choice initiatives.”

More opposition

Organizations that advocate for students with disabilities, including the National Center for Learning Disabilities, the Council for Exceptional Children, the Center for Learner Equity, and The Arc of the United States, fiercely opposed the bill, highlighting concerns that it is not sufficient in providing enforceable protections for students with disabilities and their families.

In a statement, Jacqueline Rodriguez, CEO of the National Center for Learning Disabilities, said “the guarantee of rights and protections for students with disabilities using these vouchers is disingenuous at best and crooked at worst, without the other critical provisions of IDEA,” or the Individuals with Disabilities Education Act.

“It is quite possible that families with disabilities will use a voucher under the pretense that their child will have the same rights when in fact they do not,” Rodriguez said.