The Fight Against Federal School Vouchers

As we gear up for the 119th Congress, we’re preparing for a new push for federal vouchers. President-elect Donald Trump has said that creating a universal school voucher program is one of his top education priorities. Despite the popularity of school vouchers among politicians in recent years, research shows vouchers do not increase academic achievement, mostly benefit students already attending private schools, and lack accountability. Vouchers defund public schools and provide financial assistance to small numbers of students at the expense of the 90% of children who attend public schools. Every time there has been a ballot measure, Republican, Democratic, and Independent voters have all soundly rejected private school vouchers.

We expect H.R. 9462, the Educational Choice for Children Act of 2024 by Rep. Adrian Smith (R-NE), a bill that would create a federal school voucher program and provide an opportunity for donors to evade capital gains tax, to be reintroduced and pushed in 2025. This legislation proposes funding vouchers through a tax-credit scholarship where the donor would receive a dollar-for-dollar credit against their federal taxes.

The current operative version of the bill, H.R. 9462, was passed by the House Ways and Means Committee. In the 119th Congress, the bill could be passed through reconciliation, which expedites the process of certain budget legislation and overrides the Senate filibuster’s 60-vote requirement for passage.

The bill itself is costly: it will spend $5 billion a year in taxpayer funds, totaling $20 billion over a four-year period. However, the loss of revenue will be higher when considering the federal and state losses of capital gains tax. The bill provides an opportunity to evade capital gains taxes by allowing donations of “marketable securities.” According to the Institute on Taxation and Economic Policy, this provision could lead to a “120 percent match or more for upper-income families.” This means that individuals would be able to sell their stocks without paying capital gains tax on them, which would disproportionately benefit wealthy Americans and decrease funding in state and federal budgets.

This bill would also create a system for privileging certain charities over others. We already have a system for tax deductions to charitable organizations through the IRC section 170. This bill would prioritize donations to private schools over charities that address other issues, such as food banks, churches, and homeless shelters.

It’s important that public funds remain in public schools, that students are not discriminated against in the schools they attend, and that private schools aren’t favored over other causes in our tax code. Instead of giving tax breaks to the rich, let’s invest in our children and improve our public schools.

Public School Advocates Fight Back (and win)!

South Carolina: The state Supreme Court struck down the 2023 private school voucher program in Eidson v. South Carolina Department of Education, ruling it violated the state constitution by diverting public funds to private schools. The court sided with the plaintiffs, including public school parents, and the South Carolina State Conference of the NAACP, reinforcing their commitment to supporting the use of public funds for public schools and ensuring equitable access for all students.    

Resources & Events from Our Partners

The National Education Association (NEA) is a leading advocate for public education. You can support their efforts by signing their petitionto protect public schools from the expansion of private school vouchers, which is proposed in Project 2025.  

The American Federation of Teachers (AFT) is a professional union committed to advancing fairness, democracy, and public education. Join their campaign, Real Solutions for Kids and Communities, to support strengthening public education. Find ways to get involved, hear success stories, and access more information on public schools.  

EdTrust is an organization that conducts research and advocates for equity in education, providing resources to help individuals and groups oppose the expansion of private school voucher programs. You can access their advocacy toolkit for guidance on how to take action and advocate for public education.