Bills of Congress May 20, 2025 by U.S. Congress

S.1810 - Universal School Choice Act (119th Congress)

Summary

The Universal School Choice Act aims to amend the Internal Revenue Code to provide tax credits for charitable donations to nonprofit organizations that offer education scholarships to eligible elementary and secondary students. It introduces new sections to the tax code, including credits for both individuals and corporations, and establishes a national volume cap on these credits. The bill also includes provisions to prevent the commingling of funds and ensure organizational and parental autonomy.

Expected Effects

The likely effect of this act is to incentivize private donations towards scholarship granting organizations, potentially increasing access to private and religious schools for students. It could also shift some of the financial burden of education from the public sector to private donors. This may lead to increased competition among schools and potentially improved educational outcomes for some students.

Potential Benefits 4/5

- Increased educational options for students, particularly those from low-income families.
- Incentivizes charitable giving towards education.
- Promotes competition among schools, potentially leading to innovation and improved educational quality.
- Reduces the financial burden on public schools by shifting some students to private institutions.
- Empowers parents with greater control over their children's education.

Most Benefited Areas:

Education & Skill Development ★ ★ ★ ★ ★

Economic Growth & Job Creation ★ ★ ★ ★ ★

Business Prosperity & Innovation ★ ★ ★ ★ ★

Potential Disadvantages

- May divert resources from public schools, potentially weakening them.
- Could lead to inequitable distribution of educational opportunities if scholarships are not targeted effectively.
- The volume cap may limit the overall impact of the tax credit.
- Potential for abuse by scholarship granting organizations.
- Increased administrative burden associated with managing the tax credit and ensuring compliance.

Constitutional Alignment 3/5

The bill's alignment with the Constitution is complex. Proponents may argue it aligns with the general welfare clause by promoting education (Article I, Section 8). However, opponents might raise concerns about the Establishment Clause of the First Amendment if the scholarships disproportionately benefit religious schools. The provisions ensuring organizational and parental autonomy are intended to mitigate potential conflicts with religious freedom.