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Federal Voucher Program Proposal Moves Forward Amidst Senate Challenges

On May 22, 2025, the U.S. House of Representatives approved the comprehensive "One Big Beautiful Bill Act," pivotal to President Donald Trump's legislative ambitions, with a narrow 215-214 vote. This contentious bill now awaits deliberation in the Senate.

The legislation seeks to solidify prior tax cuts from Trump's initial term and introduce novel fiscal reductions, including exemptions on tips and overtime income. It also proposes tighter work mandates for Medicaid and SNAP, while curtailing select clean energy tax incentives. Additionally, the bill directs substantial finances toward border and defense enhancements.

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Mechanics of the Proposed Voucher Initiative

The initiative aims to establish a $5 billion yearly program leveraging the federal tax system to incentivize contributions to Scholarship Granting Organizations (SGOs). These donations, eligible for a direct dollar-for-dollar tax credit, surpass typical charitable contributions in generosity. According to NPR, SGOs would allocate the funds as scholarships for various educational expenditures, covering private school tuition, educational materials, and homeschooling.

Senator Bill Cassidy (R-La.) advocated, "Empowering parents with educational choice paves the path to the American Dream."

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Support and Opposition Spectrum

Advocates suggest the plan equips families, particularly in underperforming districts, with diverse educational choices, thus promoting "education freedom" and parental autonomy. However, dissenters raise alarms over potential resource drainage from public schools, arguing it primarily benefits affluent donors via tax shelters. Sasha Pudelski from AASA, the School Superintendents Association, cautioned against "waste, fraud, and abuses" endemic to existing voucher schemes.

Critics further note the scheme's facilitation of tax avoidance, allowing donors to bypass capital gains taxes on appreciated stock donations while securing full tax credits, offering disproportionate tax advantages to the wealthy.

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Repercussions for Public School Funding

Proponents of public education, like the Campaign for Children, fear the proposal's potential to destabilize the public education framework by reallocating funds to private entities, thereby deepening existing disparities and diminishing educational quality for the vast majority enrolled in public schools. As per an OSBA report, the National Coalition for Public Education urged a focus on enhancing opportunities for the 90% of U.S. students in public schooling systems.

Currently under Senate consideration, the proposal's fate is uncertain due to its polarizing implications and the necessity for a simple majority to proceed without bipartisan concurrence. Continued debate on this plan poses significant potential transformation for U.S. educational infrastructure, influencing funding dynamics and accessibility across the nation.

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