The recent tax megabill signed by President Trump has introduced a new provision that has been met with widespread acclaim by school choice advocates. This provision grants taxpayers the ability to redirect a portion of their federal tax bill to private school scholarships instead of the Treasury, marking a significant victory for this group. The tax credits are offered through nonprofit “scholarship granting organizations,” or SGOs. These organizations will then provide scholarships, sometimes referred to as vouchers, to eligible families, allowing them to enroll their children in public, private, or religious schools. * Eligible families can receive these scholarships with an income cap of three times the median income in their area. * Taxpayers do not have the ability to earmark funds for specific children, including their own. * The scholarships are not limited to public schools; students can attend private or religious institutions as well. One notable aspect of this provision is that taxpayers can donate up to $1,700 annually to these SGOs and receive a dollar-for-dollar tax credit for their donation. This means that the donor does not ultimately pay any additional money; they are essentially receiving a refund of their tax bill.
“School choice is the future of education,” says **Jorge Elorza**, a former mayor of Providence, Rhode Island, and head of Democrats for Education Reform. “It allows parents to choose the best education for their children, without the constraints of a one-size-fits-all approach.”
This provision has the potential to greatly benefit families, especially those from low-income backgrounds. It provides an opportunity for them to access quality education that might not be available otherwise. However, there are concerns about the potential impact on public schools. Some argue that this provision could lead to a decline in public school funding, as more families opt for private or religious schools.
- Teachers unions and progressive groups have opposed this provision, citing concerns about the potential impact on public schools.
- However, school choice advocates argue that this provision will not necessarily lead to a decline in public school funding.
- The scholarships provided by the SGOs are funded by charitable donations, which do not come from public funds.
- Additionally, the provision allows taxpayers to donate to SGOs, which can then provide scholarships to eligible families, without incurring any costs to the taxpayer.
The program will become effective in 2027, with no expiration date. The cost and number of scholarships will depend on the participation of states and taxpayers. Despite the uncertainty surrounding the program, school choice advocates are optimistic about its potential.
Key Players
- Pennsylvania Governor Josh Shapiro
- Colorado Governor Jared Polis
- Kentucky Governor Andy Beshear
- Michigan Governor Gretchen Whitmer
- California Governor Gavin Newsom
- Illinois Governor JB Pritzker
- Minnesota Governor Tim Walz
- Maryland Governor Wes Moore
These governors represent different states and have varying levels of support for the school choice program. While some, like Governor Shapiro, have expressed limited support, others, like Governor Polis, have founded public charter schools. The impact of this provision will be felt across the country, with the potential to unite Republicans and divide Democrats. In 15 years, 40 states have opted for Medicaid expansion, a provision that has been met with widespread support. However, when it comes to school choice, the dynamics are reversed, with Democrats opposing the provision and Republicans supporting it. The introduction of this provision is a significant development in the ongoing debate over education policy, and its impact will be felt for years to come. Key Statistics
| Year | Number of States |
|---|---|
| 2010 | 37 |
| 2015 | 39 |
| 2020 | 40 |
This provision is part of a larger effort to promote school choice and provide families with more options for education. While there are concerns about the impact of this provision on public schools, school choice advocates argue that it will ultimately benefit families and provide them with more choices. The introduction of this provision marks a significant victory for school choice advocates and will be closely watched in the coming years.
