H.R.817 - Educational Choice for Children Act of 2025 (119th Congress)
Summary
H.R.817, the "Educational Choice for Children Act of 2025," proposes amendments to the Internal Revenue Code of 1986. It introduces a tax credit for charitable donations to nonprofit organizations that provide education scholarships to qualified elementary and secondary students. The bill also includes provisions to exempt these scholarships from gross income and aims to protect the autonomy of scholarship organizations and non-public schools.
Expected Effects
The bill's passage would create a federal tax credit for individuals donating to scholarship-granting organizations. This would incentivize private donations to support students attending private or religious schools. It could also shift some students from public to private education.
Potential Benefits
- Increased School Choice: Provides families, particularly those with lower incomes, with more options for their children's education.
- Incentivizes Charitable Giving: Encourages individuals to donate to scholarship-granting organizations through tax credits.
- Supports Non-Public Schools: Offers financial support to private and religious schools through increased scholarship availability.
- Promotes Educational Innovation: Could foster competition and innovation among schools as they strive to attract scholarship recipients.
- Protects Organizational Autonomy: Prevents government overreach by ensuring scholarship organizations and non-public schools maintain their independence.
Potential Disadvantages
- Potential Drain on Public School Funding: May divert resources away from public schools as students utilize scholarships to attend private schools.
- Equity Concerns: Could exacerbate inequalities if scholarship access is not evenly distributed among eligible students.
- Complexity of Implementation: The volume cap and allocation process may create administrative challenges and uncertainties.
- Risk of Insufficient Oversight: There is a potential risk of mismanagement or fraud by scholarship-granting organizations if oversight is inadequate.
- Potential for Religious Discrimination: Concerns that religious schools may discriminate against students based on religion, despite the bill's intent to prevent government discrimination against religious institutions.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is complex. Proponents may argue it aligns with the First Amendment's guarantee of religious freedom, as it supports faith-based educational options. Opponents might argue that it violates the Establishment Clause by indirectly funding religious institutions through tax credits. The bill also touches on the principle of equal protection under the law, as it aims to provide educational opportunities to students from lower-income households.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).