Senate Passes Revised Federal School Choice Tax Credit Program

The Senate passed a significant federal school-choice provision as part of President Donald Trump's "Big Beautiful Bill," establishing the Educational Choice for Children Act (ECCA), the largest federal school choice program ever enacted. The program creates a federal tax credit for donations to scholarship organizations, allowing states to opt-in and approve eligible scholarship programs, with a lowered individual donor cap of $1,700 and no nationwide cap on credits. This version differs from the House's original, which had a higher donation cap and mandated nationwide implementation, and it removes language preventing regulation of private and religious schools, giving Treasury oversight authority. Proponents, including the Orthodox Union and Senators Cruz, Scott, and Cassidy, hailed the measure as historic and a fulfillment of President Trump's priorities for school choice. However, critics, including top congressional Democrats, argue that vouchers do not improve educational outcomes, promote segregation, and undermine public education by diverting funds. The provision's passage faced opposition, including a failed amendment to remove the voucher language, and concerns remain about its effectiveness and impact on private school regulation and participation in Democratic-leaning states.