Trump’s big bill includes an ‘unprecedented’ tax credit for a national school voucher program. Here’s how it would work

Part of the massive domestic policy bill currently moving through Congress known as the “Big Beautiful Bill,” includes an unprecedented $5 billion national school voucher program. Republicans have long advocated for so-called school choice, but critics have labeled the initiative a tax cut for the wealthy.

Part of the massive domestic policy bill currently moving through Congress known as the “Big Beautiful Bill,” includes an unprecedented $5 billion national school voucher program. Republicans have long advocated for so-called school choice, but critics have labeled the initiative a tax cut for the wealthy. Sending public dollars to private schools has long been the subject of partisan divide and controversy. It has many powerful advocates, most notably former Education Secretary Betsy DeVos, who served under Trump during his first term. And it has fierce critics, particularly on the left. But congressional Republicans’ proposal, known as the Educational Choice for Children Act (ECCA), goes beyond any previous efforts, not just by creating the first nationwide program but also by creating an unusual federal tax credit for anyone wanting to donate toward the cause. Families making up to 300% of area median income would be able to apply for, and receive, scholarships to use toward private school tuition, homeschooling books or tutoring, for example. The money would be given out by third-party scholarship granting organizations (SGOs) certified by the US Treasury and IRS. Donors would be the ones to reap the tax benefits, though. Anyone across the country – with or without kids – would be able to donate to one of these SGOs as they would to any charity. But unlike donating to a church or food bank, where tax-deductible contributions help lower total taxable income, SGO donations would result in a full tax credit, dollar for dollar, up to the greater of $5,000 or 10% of one’s income. For example, $1,000 donated to an SGO would result in $1,000 taken off one’s tax bill.