The U.S. Senate passed a major education provision on July 1 called the Educational Choice for Children Act (ECCA). It’s part of a larger package, the One Big Beautiful Bill, and it could change how millions of families pay for K–12 education.
The goal is simple: help parents afford better schooling options for their kids. That includes private schools, homeschooling, and other specialized learning programs.
How the Program Works
The ECCA creates a federal tax-credit scholarship program. Here’s how that breaks down:
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Private citizens and businesses can donate to scholarship-granting organizations (SGOs).
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In return, they get a dollar-for-dollar federal tax credit—up to $5,000 or 10% of their income (whichever is more).
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The total amount of tax credits allowed nationwide is capped at $5 billion each year, starting in 2026 and ending in 2029.
The SGOs then use those donations to offer scholarships for K–12 students. The money can be used to pay for:
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Private school tuition
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Homeschooling materials and programs
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Tutoring, textbooks, and testing
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Dual enrollment in college classes
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Therapies for children with disabilities
Who Can Apply?
The law is designed to help low- and middle-income families. To qualify, your household income must be under 300% of the area median income. That means the income limit changes based on where you live.
For example:
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In Daviess County, Kentucky, a family of four could qualify with an income up to about $195,000.
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In Loudoun County, Virginia, the limit would be around $536,000.
This broad range means many working families, not just those in poverty, can benefit.
To be eligible, students must be allowed to enroll in a public school. SGOs are required to give priority to students who have already received a scholarship or have a sibling who did.
What Makes This Different?
This is a federal program, but it’s state-driven. States have to choose to participate. Each state identifies and certifies the SGOs operating there. That’s important because it gives local communities control while still opening the door to national funding.
States like Illinois, which ended its own school choice program in 2023, could choose to join the federal version instead.
The program also avoids direct federal control. The government won’t be telling private schools or homeschoolers what to teach or how to operate. The rules are simple: SGOs must give out at least 90% of what they receive and check family income to make sure only qualified students get the funds.
What’s the Impact?
If fully used, the $5 billion cap could support millions of students. Scholarship amounts will vary but are expected to fall between $2,500 and $12,000, depending on where you live and what kind of school your child attends.
That could double the number of students getting private scholarships in one year.
For parents, this means:
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More options to leave underperforming public schools
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Financial help to homeschool or try charter programs
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Better access to special services for kids with disabilities
It also encourages competition among schools. When parents can take their kids (and their education dollars) elsewhere, schools have a reason to improve.
What Are the Concerns?
Critics worry the tax credits could reduce federal revenue, estimated at $23 billion over ten years. Others argue it could hurt public schools if too many students leave, or say private schools can pick and choose who they admit.
There’s also debate about how much vouchers or scholarships improve academic outcomes. Results have been mixed in past programs.
Even with those concerns, the ECCA avoids common pitfalls. It doesn’t cut public school budgets directly. It keeps regulation light. And it helps families who often fall through the cracks—too wealthy for public aid, too stretched to afford private school.
What Happens Next?
If the House passes the bill and President Trump signs it as expected by today, July 4, the program will start in 2026.
States will need to opt in, certify their SGOs, and help families apply. Success will depend on how many donors participate and how well each state manages the rollout.
For now, the message to parents is clear: real school choice may finally be on the horizon, without waiting for state politics to catch up.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
