A new school choice program proposed by the Trump administration would provide tax credits for donations to fund up to $5 billion in student scholarships, but liberal and conservative groups alike greeted it with criticism.
Education Secretary Betsy DeVos, Sen. Ted Cruz, R-Texas, and Rep. Bradley Byrne, R-Ala., unveiled the Education Freedom Scholarships and Opportunity Act at a press conference February 28, saying the funding would ensure that students receive personalized education that unlocks their potential.
Under the legislation, taxpayers would receive a nonrefundable, dollar-for-dollar federal tax credit in exchange for their voluntary contributions to state-identified scholarship-granting organizations.
“Students, families, teachers, schools, states — all can participate, if they choose, and do so in the ways that work best for them,” DeVos said. “The major shift is that a student’s needs and preferences — not their address or family income — will determine the type and quality of education they can pursue.”
Cruz noted that the scholarships could be used for private and home education, apprenticeships, industry certifications, concurrent and dual enrollment, tutoring, educational therapy, after-school education programs, and transportation. States would decide whether to participate and how to select eligible students, education providers, and allowable education expenses.
The proposal was panned by Carl Davis of the Institute on Taxation and Economic Policy, who called it a federally funded voucher program that requires no financial sacrifice from donors. “The program would be built around a supersized, dollar-for-dollar tax credit that would drain federal revenues without requiring participants to contribute a dime of their own money,” he said in a statement.
The National Coalition for Public Education also issued a statement criticizing the proposal. “Tax-credit programs nationwide have been found to have the same problems inherent to all voucher programs: They do not provide better educational opportunities for students or improve academic achievement,” the group said.
The Heritage Foundation said the proposal would have unintended consequences. “This could open the door for further education regulations down the road that neutralize the advantages of private education as well as impede future tax reform efforts,” wrote Lindsey Burke and Adam Michel in a Heritage blog post.