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Dive Brief:
- Some states are pivoting away from investing in their established private school choice programs as costs rise and lawmakers seek more information about academic impacts and student participation, according to a recent blog by the Center on Budget and Policy Priorities.
- A bill to expand private school choice in Mississippi died after being rejected by the state’s Senate Education Committee, and Georgia lawmakers passed a budget that cut $41 million from the Georgia Promise Scholarship program, capping the program for fiscal year 2027 at $100 million. Louisiana, Florida and South Carolina also made moves or had discussions about rolling back some private school choice initiatives, according to CBPP.
- Although CBPP reports that some states are walking back private school choice initiatives, other states like West Virginia and Texas are expanding these options, demonstrating that the controversial education funding model continues to attract supporters and critics.
Dive Insight:
It’s typical for lawmakers to make state-level shifts in private school choice programming as they evaluate the impacts and needs in their communities. But now these adjustments are coming as the first nationally-available federal private school choice tax incentive program prepares to launch next year.
States must opt-into that federal program in order for students in those states to receive scholarships funded by taxpayers’ charitable giving. So far, 27 states have indicated interest to the IRS that they would like to participate. The U.S. Department of the Treasury, which is overseeing the school choice tax incentive program, is currently writing a proposed regulation detailing requirements and expectations for the Federal Scholarship Tax Credit program.
Under the scholarship program included in 2025’s “One Big, Beautiful Bill,” taxpayers would be able to donate up to $1,700 annually to a scholarship-granting 501(c)(3) organization. They then would be eligible for a 100% federal income tax credit for their contributions.
Student eligibility for the federally managed scholarships would be based on a household income up to 300% of an area’s median income, as defined by the U.S. Department of Housing and Urban Development. Parent taxpayers would not be able to direct donations for scholarships that benefit their own children.
Under the federal program, scholarships can be used for private school tuition, public school expenses and other K-12 education-related costs.
Currently, only five states have fully universal accessible private school choice programs, according to EdChoice, a nonprofit organization supportive of school choice. Overall, 34 states plus Puerto Rico and the District of Columbia, offer some type of private school choice option, collectively serving 1.5 million students.
Supporters of private school choice say these options empower families to make enrollment decisions based on their child’s needs. Opponents are concerned these programs lead to decreased public school funding and lack transparency and accountability.
Some of these disagreements over private school choice programs develop into lawsuits. In one lawsuit filed this week, the Florida Education Association, a teachers union, sued the Florida Department of Education and members of the State Board of Education for directing $4.9 billion each year to private schools and certain charter schools that “are not required to follow the same rules as public schools,” according to the lawsuit.
In a Wednesday statement, Jeb Bush, former Florida governor and chairman of the Foundation for Florida’s Future, condemned the lawsuit and said, “Education is not a one-size-fits-all endeavor. The success of our state depends on a diverse educational ecosystem where public, charter and private options exist together to serve all students.”
In its blog post, CBPP urged states to consider the financial needs of public schools, particularly as states enact tax cuts and as federally supported programs like Medicaid and the Supplemental Nutrition Assistance Program face reduced funding.
“One way to help ensure that schools have the funding they need is to reject any further school voucher program expansions and scale back school voucher spending by limiting eligibility and improving oversight and accountability, in addition to raising and protecting revenue,” CBPP said.
