Rep. Adrian Smith (R-NE) reintroduced the Educational Choice for Children Act, bicameral legislation to expand education freedom and opportunity for students. Specifically, it provides a charitable donation incentive for individuals and businesses to fund scholarship awards for students to cover expenses related to K-12 public and private education.

This bill allows individuals and corporations a new tax credit after 2023 for charitable contributions to tax-exempt organizations that provide scholarships to elementary and secondary school students. Such students must be members of a household with incomes not greater 300% of the area median gross income and be eligible to enroll in a public elementary or secondary school.

The bill excludes from the gross income of taxpayer dependents any scholarship amount for the elementary or secondary education expenses of eligible students. It also prohibits governmental control over scholarship granting organizations.

?The Educational Choice for Children Act:

• Provides $10 billion in annual tax credits to be made available to taxpayers. Allotment of these credits to individuals would be administered by the Treasury Department.
• A base amount will be set for each state and then the credits are distributed on a first-come, first-serve basis.
• Uses a limited government approach with respect to federalism, thus avoiding mandates on states, localities, and school districts.
• Includes provisions that govern Scholarship Granting Organizations (SGOs), as SGOs are given the ability to determine the individual amount of scholarship awards.

“Giving students a brighter future, no matter their background or address, is critical to move American K-12 education forward,” said Rep. Smith. “We must empower parents with more options, acknowledging they have the final say in what educational setting is best for their children. ECCA will benefit public, private, and homeschool students and increase the quality of education in our country. I thank Rep. Owens and Sen. Cassidy for championing this legislation alongside me.”

"The Educational Choice for Children Act is a top priority for the 119th Congress because it puts power where it belongs—in the hands of families, not bureaucracies," said  Rep. Burgess Owens (R-UT) . "This bill gives parents the freedom to choose the best educational path for their children, opening doors for millions of students nationwide to access scholarships for tuition, books, and supplies—whether they’re in public school, private school, or learning at home. The days of tolerating a one-size-fits-all system that traps students in mediocrity are over. We will keep fighting to ensure that every child has a future filled with hope, opportunity, and the tools to achieve their American Dream, regardless of their race, income, or zip code."

In addition, these programs often disproportionately benefit middle- and upper-income families who can already afford private schooling. Many low-income families may still struggle to cover the remaining tuition costs, even with scholarships. There is no strong evidence that voucher or tax credit programs lead to widespread academic improvement.