Mixed responses continue to swirl about the new federal law that provides tax incentives for people who donate to organizations that provide scholarships to private K-12 schools. School choice proponents are calling the Educational Choice for Children Act a win for all students, while opponents say the program will only benefit wealthy families. Starting in 2027, people who donate up to $1,700 to organizations that provide K-12 scholarships will be 100% reimbursed through federal tax credits.
Brian Jodice, national press secretary for American Federation for Children, said this is not a voucher program but rather a donor-driven initiative that provides all families with more options.
“It doesn’t impact state budgets,” he explained. “It doesn’t impact the federal budget. It allows people to donate to these scholarship granting organizations and get a tax credit, so [it] incentivizes the donors to go do that, which we think is a good thing. But then it also incentivizes families to be able to go apply for it and let their students benefit from it.”
The Institute on Taxation and Economic Policy says more than 138 million people nationwide could be eligible for the tax credit. They predict about 43% will participate which would cost the federal government more than $100 billion per year. States must opt in to participate.
Opponents argue the scholarships would benefit those who are already in private schools rather than providing an opportunity for lower-income families to switch from public to private school.
Maura McInerney, legal director with the Education Law Center, said the program is a tax shelter that benefits the wealthy at the expense of low-income people and public schools.
“We’ve seen this occur in other states, and there’s no accountability for these dollars and how they’re spent,” she explained. “The only criterion for receiving a voucher is actually a high family income limit. So essentially this money will potentially benefit students who are already in private schools.”
She said the program opens the door to discrimination since there is no oversight on what qualifications scholarship-granting organizations can impose on applicants. The program also does not have a cap, which McInerney added makes it especially concerning. Federal law says governors or a designated agency will decide if a state participates in the program.
