A Big, Beautiful Win for School Choice
The House budget reconciliation bill, AKA the “One Big Beautiful Bill,” has passed and is on its way to President Trump’s desk for signing. A significant victory for school choice is included in the 940-page legislation—the incorporation of a version of the Educational Choice for Children Act (ECCA), which was introduced earlier this year by Nebraska Congressman Adrian Smith (NE-03).
The ECCA establishes a federal tax credit program providing up to $5 billion annually through 2029 to fund scholarships for families earning less than 300% of their area’s median gross income. It operates similarly to former Nebraska State Senator Lou Ann Linehan’s Opportunity Scholarships Act, which passed in 2023 but was later repealed due to anti-school choice activists and a $7.2 million ballot initiative. Unlike vouchers, this federal initiative does not divert public school funding directly but incentivizes private donations to Scholarship Granting Organizations (SGOs).
Eligible expenses include private school tuition, books, instructional materials, online classes, private tutoring, dual enrollment fees, and educational therapies, including for homeschooling families. The program avoids direct federal mandates on states, school districts, or schools, emphasizing a limited government approach. Each state is guaranteed at least $20 million in tax credits if SGOs raise the funds, with remaining credits distributed on a first-come, first-serve basis.
The program could potentially double the number of students benefiting from private school choice programs, supporting up to 2 million students nationwide.