What the Recent School Choice and Education Laws Will Mean for the States and for Parents

In recent years, we’ve chronicled the rising tide of states – 18 now, with recent legislative victories in Texas and New Hampshire – that have embraced universal school choice.

But what about parents who live the other 32 states? Thanks to decisive action in Congress (yes, you read that correctly), the ability of parents to choose high-quality private schools, whether religiously based schools, STEM-oriented or arts-centered, will gradually increase.

Congress – with the leadership of Rep. Adrian Smith, chairman of the subcommittee of jurisdiction on Ways & Means in the House, and Sen. Bill Cassidy in the Senate – passed the Educational Choice for Children Act (ECCA) just before the July 4th holiday. This bill made available a 100-percent federal income tax credit of $1,700 for donors. This credit is available to donors in all 50 states to support scholarship-granting organizations that allow parents to send their children to a high-quality private school.

There are several aspects of this new law that will transform the American educational landscape from the national level, as governors are doing in the states.

• This tax credit is permanent. It would take a future act of Congress to undo it, something that once granted would be politically difficult to achieve.

 

• It will only take future amendments to the law to increase the tax credit and to broaden the base of donors to include businesses and other well-resourced groups.

 

• The law does limit scholarships to students who live in states in which the governor or designated agency under state law decides to opt-in to the program. But nothing keeps donors living in an “opt-out” state from donating to scholarship organizations around the country.

 

• Even in states in which politicians have been hostile to school choice it will be difficult for governors to turn down free money from the federal government to support private schools options in-state.

We again quote a recent Chicago Tribune editorial, where politicians have long been resistant to competition in education:

“Opponents of school choice believe that education is a zero-sum game, and that private schools are a threat to the public system. We believe the opposite – that a thriving private and charter system and a strong traditional public system create an educational ecosystem that can serve everyone’s needs. There are things private schools can do that public ones can’t, and the same is very much true in reverse.

“School choice remains popular in Illinois, with a clear majority of residents supporting the concept.”

With polls showing overwhelming support for school choice among Democrats, Republicans, and Independents, expect to see intense pressure from parents to allow these scholarships in every state.

Another big win came with the passage and signing into law of the Student Empowerment Act, which expands 529 plans – a tax-advantaged investment account designed to encourage saving for future education expenses, such as college or K-12 tuition – to help families save for public, private, religious, and homeschool students and families.

• This bill – passed with the leadership of Sen. Ted Cruz and Rep. Kevin Hern – will allow parents to transfer any unused funds in a 529 account from leftover college expenses to, for example, the private religious elementary school of grandchildren.

These two measures, coupled with the rising tide of states that have embraced universal school choice, show that the school choice movement – and its support for First Amendment values – is not only here to stay, but to grow as well.

• Both the ECCA and the Student Empowerment Act give religious schools the same access to these programs as any other kind of private school.

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With victories in the states and in Washington D.C., the national success of the school choice movement now appears to only be a matter of time.

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