People and businesses would get federal tax credits for donating to nonprofits that give K-12 scholarships. The scholarships could cover private school, religious school, or homeschool costs for families earning up to three times the local median income. There's a $10 billion yearly cap on the credits, and families wouldn't owe taxes on the scholarship money.
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Educational Choice for Children Act of 2025 is a House bill in committee. The latest recorded action: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Latest action on H.R. 833: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Who this affects: This bill mainly affects families with K-12 students who earn up to three times the local median income and are looking for help paying for private, religious, or homeschool education. It also matters for donors and corporations who want a new way to lower their federal taxes, and for nonprofits that would run these scholarship programs under new federal rules.
Why this matters: Right now, many families can't afford private or religious school even if they want an alternative to their local public school. This bill would create a major new pipeline for scholarship money — up to $10 billion a year — funded by tax credits instead of direct government spending. How widely this gets used, and which communities benefit most, would depend on where donors and scholarship nonprofits are most active.
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