The Educational Choice for Children Act (ECCA) Offers Tax Credits for Donations Funding K–12 Education Scholarships
North Carolina has become the first state in the United States to approve legislation opting into the Educational Choice for Children Act (ECCA), a federal school choice programme that offers tax credits for donations funding K–12 education scholarships. The bill, passed by the North Carolina General Assembly, now awaits the decision of Governor Josh Stein. The ECCA was signed into law on Independence Day as part of the federal budget reconciliation bill. It provides a 100% federal tax credit of up to $1,700 per year for individuals donating to scholarship-granting organisations. These scholarships can be used by students for tuition at private schools, special education services, tutoring, or other approved educational expenses.
What Does the ECCA Offer?
- 100% federal tax credit of up to $1,700 per year for individuals donating to scholarship-granting organisations
- Scholarships can be used by students for tuition at private schools, special education services, tutoring, or other approved educational expenses
- Expands access to private education for low-income families
- Allows scholarship eligibility to families earning up to 300% of the median income in their area
The Impact on Illinois
Illinois lost a similar programme in 2023, affecting 15,000 students. The ECCA would expand access by allowing scholarship eligibility to families earning up to 300% of the median income in their area. This threshold is broader than Illinois’ previous programme, which was limited to families making 300% of the federal poverty level. Scholarship recipients would be able to attend any type of K–12 school, including traditional public schools, public charter schools, private or religious schools, or be home-schooled. Funds could also be used for instructional materials, standardised test fees, college admission exam fees, dual-enrolment courses, and educational therapies for students with disabilities.
Illinois Residents Can Still Contribute to Students in Other States
Even if Illinois does not opt into the ECCA, residents may still donate to support students in other states that have joined the programme. However, it remains unclear which agency in Illinois has the authority to opt into the programme. Governor J.B. Pritzker’s support would be required, but he has publicly opposed similar measures in the past. As reported by the Illinois Policy, Illinois voters had supported the Invest in Kids programme by a margin of three to one before it was ended, while the state’s teachers unions contributed nearly $1.5 million to political campaigns during that time.
Concerns About Academic Performance
According to data cited by the Illinois Policy, only one in four low-income Illinois students in third through eighth grade can read at grade level. Furthermore, just one in seven is proficient in mathematics. Supporters of school choice policies have pointed to these figures as indicators of the urgent need for alternative education options for underserved families. The ECCA would provide a broader range of options for these students, allowing them to access private education, tutoring, and special education services.
Conclusion
The ECCA offers a new opportunity for low-income families in North Carolina to access private education, tutoring, and special education services. While the impact on Illinois is uncertain, the ECCA provides a model for other states to follow.
