First nationwide school choice bill passes U.S. House committee

For the first time in U.S. history, a federal school choice bill has passed out of committee and advanced to the U.S. House floor – a hopeful move for 15,000 low-income Illinois students whose scholarships were taken away by state lawmakers.

The U.S. House Committee on Ways and Means passed H.R. 9462, or the Educational Choice for Children Act of 2024, aimed to “help end the skilled labor shortage and expand educational scholarships for low-income families and students.” It passed the committee by a vote of 23-16 on Sept. 11.

If enacted, the legislation would provide a dollar-for-dollar tax credit up to $5,000 for donations to scholarship granting organizations, or tax-exempt organizations providing scholarships to students. The federal tax-credit scholarship program would only award scholarships to low-income students whose family household incomes were at or below 300% of the median income level in their area. The program’s goal is to “expand educational freedom and parent choice to families unable to afford alternative schooling options.”

While students may use the scholarship funds to pay for tuition at a private school, recipients can also attend public school and use the funds for other expenses. Those include curriculum or books, online educational materials, tutoring or additional educational classes, fees for advanced placement exams or college admission exams, fees for dual enrollment and educational therapies for students with disabilities.

The bill proposes the program be allocated $5 billion in tax credits each year, according to a fact sheet compiled by the House Ways and Means Committee.

The fact sheet also notes the federal tax-credit scholarship program would operate as a “pilot program” with a four-year trial period, much like Illinois’ Invest in Kids Tax-Credit Scholarship program which was enacted as a pilot program in 2017 and ended in 2023 after Illinois lawmakers under pressure from teachers unions failed to extend the program and removed scholarships from more than 15,000 low-income students.

While Illinois bucked national trends in November 2023 when lawmakers made Illinois the only state to roll back the state’s tax-credit scholarship program, there are 20 states with state-level legislation in place providing for tax-credit scholarships to students.

If the federal tax-credit scholarship program is enacted, low-income Illinois students could once again be eligible to receive scholarships to attend private schools or access additional educational support.

As they did in Illinois, teachers unions are trying to push the narrative that a donation-driven program somehow takes money from public education. The National Education Association is actively opposing the bill, claiming education choice for children is bad and locking them into lackluster public schools is good.

While there are still multiple hurdles to enactment – including passage in the House and Senate and signature by the president – the bill’s historic passage out of committee gives hope to families in Illinois who have not been given the options and advantages families in other states enjoy.

By Policy Analyst Hannah Schmid