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Bill > HR833

US HR833

Educational Choice for Children Act of 2025

summary

Introduced
01/31/2025
In Committee
01/31/2025
Crossed Over
Passed
Dead

Introduced Session

119th Congress

Bill Summary

A BILL To amend the Internal Revenue Code of 1986 to allow a credit against tax for charitable donations to nonprofit organizations providing education scholarships to qualified elementary and secondary students.

AI Summary

This bill creates a new federal tax credit system to support educational scholarships for K-12 students from lower and middle-income households. Specifically, both individual taxpayers and corporations can receive tax credits for donating to scholarship granting organizations (SGOs), with individual taxpayers able to claim a credit of up to 10% of their adjusted gross income or $5,000, and corporations limited to a 5% credit of their taxable income. These scholarships can be used for various educational expenses including tuition, books, online materials, tutoring, testing fees, and educational therapies for students with disabilities, and can be used at public, private, or religious schools. To qualify, scholarship granting organizations must meet strict requirements, such as providing scholarships to students from multiple schools, verifying student household income, conducting annual financial audits, and preventing self-dealing. The bill establishes a national volume cap of $10 billion annually for these tax credits, with 10% of that amount distributed evenly among states, and includes provisions to increase the cap if the credits are heavily used. The bill also ensures that these scholarships are tax-exempt for recipients and includes strong protections for the autonomy of scholarship organizations and schools, particularly religious institutions, preventing government interference or discrimination.

Committee Categories

Budget and Finance

Sponsors (90)

Adrian Smith (R)*,  Rick Allen (R),  Brian Babin (R),  Troy Balderson (R),  Andy Barr (R),  Tom Barrett (R),  Michael Baumgartner (R),  Jack Bergman (R),  Stephanie Bice (R),  Sheri Biggs (R),  Mike Bost (R),  Vern Buchanan (R),  Eric Burlison (R),  Ken Calvert (R),  Mike Carey (R),  Juan Ciscomani (R),  Ben Cline (R),  Mike Collins (R),  Jeff Crank (R),  Dan Crenshaw (R),  Byron Donalds (R),  Troy Downing (R),  Neal Dunn (R),  Randy Feenstra (R),  Brad Finstad (R),  Vince Fong (R),  Scott Franklin (R),  Brett Guthrie (R),  Abraham Hamadeh (R),  Mike Haridopolos (R),  Pat Harrigan (R),  Kevin Hern (R),  French Hill (R),  Ashley Hinson (R),  Erin Houchin (R),  Richard Hudson (R),  Bill Huizenga (R),  Jeff Hurd (R),  John James (R),  Jim Jordan (R),  John Joyce (R),  Mike Kelly (R),  Kevin Kiley (R),  Young Kim (R),  David Kustoff (R),  Darin LaHood (R),  Nick LaLota (R),  Nick Langworthy (R),  Mike Lawler (R),  Laurel Lee (R),  Julia Letlow (R),  Nancy Mace (R),  Ryan Mackenzie (R),  Nicole Malliotakis (R),  Tracey Mann (R),  Richard McCormick (R),  John McGuire (R),  Mark Messmer (R),  Dan Meuser (R),  Mary Miller (R),  Max Miller (R),  Mariannette Miller-Meeks (R),  John Moolenaar (R),  Blake Moore (R),  Tim Moore (R),  Nathaniel Moran (R),  Greg Murphy (R),  Robert Onder (R),  Burgess Owens (R),  Gary Palmer (R),  John Rose (R),  David Rouzer (R),  Michael Rulli (R),  John Rutherford (R),  María Salazar (R),  Pete Sessions (R),  Chris Smith (R),  Lloyd Smucker (R),  Pete Stauber (R),  Elise Stefanik (R),  Bryan Steil (R),  Claudia Tenney (R),  Tom Tiffany (R),  William Timmons (R),  Mike Turner (R),  Tim Walberg (R),  Randy Weber (R),  Daniel Webster (R),  Joe Wilson (R),  Rudy Yakym (R), 

Last Action

Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (on 01/31/2025)
(2 Companion Bills)

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