National school choice program begins path to 2027 launch under ‘One, Big, Beautiful Bill’

As the dust settles after the July 4 signing of the “One, Big, Beautiful Bill,” experts are examining exactly what the national school choice portion of the bill stipulates.

The Educational Choice for Children Act (ECCA) faced a contentious journey through the House and Senate, especially after the unelected Senate parliamentarian declared it unfit to be included in the budget bill reconciliation process.

Sen. Ted Cruz, R-Texas, reinstated the ECCA, albeit with significant changes to conform with the parliamentarian’s requirements. Most significant is that states must opt in to participate in the tax credit program, meaning it won’t be available in states that refuse to do so.

Still, school choice advocates are celebrating.

“Every state essentially will have the opportunity to potentially have school choice thanks to this tax-credit scholarship, which will allow any individual in America to donate $1,700 to a local scholarship group, and they can get a full 100% tax-credit, dollar-for-dollar tax-credit,” Tommy Schultz, CEO of the American Federation for Children, told Fox News. “And at the end of the day, this could help millions of families get access to the school of their choice.”

Financial tradeoffs 

There were financial tradeoffs made during the political process. The $4-5 billion caps on the amount of tax credits that could be claimed are gone in favor of no ceiling, but the size of the tax credit was cut to a maximum of $1,700 per taxpayer. 

Earlier proposals had allowed up to $5,000 in contributions or 10% of adjusted gross income, whichever is greater. (Individuals and businesses can still give more than $1,700, but won’t receive tax credits beyond that amount.) 

One study found more than 138 million people would qualify to use the tax credit, although it’s not known how many will choose to do so. If 43% of taxpayers claim it, $101 billion would be contributed to scholarship-granting organizations (SGOs) to give to students and families. If even 10% claim it, it would fund approximately 3 million scholarships, assuming an average grant of $7,000 (most state school choice programs give between $5,000 and $8,000 per student; the federal amount is not yet set). 

While the House version of the bill would have started the program next year, the final version, which is based on what the Senate approved, will start it in 2027. The tradeoff is that the program doesn’t have an end date. 

Who qualifies? 

Participation in the scholarship program is open to families earning up to 300% of the median gross income in their area, which is 85%–90% of American families, Fox reports. 

The median income in Memphis, for example, is $91,100 for a family of four, so those earning up to $364,400 would be eligible, according to K-12 Dive. 

This broad access is part of why Schultz and others say the program could add millions to school choice rolls. Current school choice participation is about 1.2 million nationwide. 

As in many states, the federal program allows parents to use the funds for everything from private school tuition to tutoring, services for students with special needs, transportation, and educational materials and technology. 

Writing the rules 

Now that the bill has passed, the Department of Education must draft specific regulations for how the program will work. These will include guidelines for recordkeeping and reporting, K-12 Dive reports, as well as how states will certify SGOs. 

The regulations will also likely spell out how the program will work in the 35 states that already have some form of school choice. 

John Dejak, head of Catholic education for U.S. Bishops, said he’s concerned that religious liberty clauses granting freedom of operation for schools were removed as the bill progressed. 

“There are no explicit protections for religious liberty, which is a problem for us,” he told Catholic News Agency. “That doesn’t mean we won’t be able to participate,” but, “much remains to be seen in terms of rulemaking, in terms of state and local conditions.” 

Schultz said his organization will “continue to fight to ensure that this tax credit scholarship mechanism is well implemented – and expanded as soon as possible.” 

“Marathon, not a sprint” 

Michael McShane, national research director for school choice advocate EdChoice, says supporters should stay involved during the regulations-writing process. 

“In most cases the rules and regulations are put out for public comment before they’re finalized,” he told The Lion previously. “Watch those things closely, and if it’s not what it’s supposed to be then say something or say what other states have done that are doing well.” 

McShane also called the journey to pass and implement school choice “a marathon, not a sprint,” and described the passage of a bill as “the first mile of a marathon.” 

“This is not a one year or 18 months and suddenly everything is different and better,” he said. “This is a three-year, five-year, 10-year play to actually see a transformed education system for the better.”