$5 Billion School Voucher Initiative: Navigating the Opposition in the Senate

On May 22, 2025, the U.S. House of Representatives narrowly passed the "One Big Beautiful Bill Act," a comprehensive legislative package integral to President Donald Trump's administration. The bill advanced with a 215-214 vote, highlighting the legislative divide within Congress. It now moves to the Senate, where its future remains uncertain.

This legislative package aims to make the tax cuts from Trump’s first term permanent and introduces new reductions, such as exemptions on tips and overtime pay. Significant adjustments are proposed for social programs, including stricter work requirements for Medicaid and SNAP, while cutting clean energy tax credits. Moreover, it allocates increased funds for border security and defense.

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Understanding the Proposed Voucher Program

Central to this act is a $5 billion annual initiative utilizing the federal tax code to incentivize donations to Scholarship Granting Organizations (SGOs) through a dollar-for-dollar federal tax credit. This generous incentive could have profound implications for funding educational expenses such as private tuition and homeschooling. NPR reports that these donations, facilitated by SGOs, would then fund scholarships to support various educational expenditures.

Senator Bill Cassidy (R-La.), a staunch supporter of the proposal, asserted, "Enhancing parental choice in education elevates the potential for realizing the American Dream."

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Support and Criticism

Proponents claim the bill empowers families in underperforming districts by increasing educational options, fostering "education freedom," and granting parents significant control over their children's schooling. Conversely, opponents warn it might deplete public school funding and disproportionately benefit wealthier donors through tax shelters. Sasha Pudelski from the AASA, the School Superintendents Association, noted the proposal risks "exacerbating the existing issues of waste, fraud, and abuse within voucher programs."

Critics also spotlight potential tax avoidance strategies. Donors could leverage the system by contributing appreciated stock to SGOs, thus sidestepping capital gains taxes while obtaining substantial tax credits—offering considerable fiscal advantages to affluent individuals.

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Implications for Public Education

Advocates for public education, such as the Campaign for Children, argue this proposal might weaken public education by shifting funds to private entities, thus deepening existing disparities and impacting the quality of public education. According to an OSBA report, the National Coalition for Public Education stressed that lawmakers should prioritize policies that benefit the 90% of U.S. students in public schools.

With the proposal under Senate scrutiny as part of the budget reconciliation process, it could pass with a simple majority, bypassing the need for broader support. Yet, it faces resistance from Democrats and education advocacy groups, rendering the proposal's enactment uncertain. As discussions proceed, the implications of this proposal could be profound, potentially altering the educational funding and access landscape across the nation.

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