On May 22, 2025, the United States House of Representatives barely passed the "One Big Beautiful Bill Act," a sweeping tax and spending package that is essential to President Donald Trump's legislative agenda. The law passed with a vote of 215-214, indicating serious divides within Congress. It now goes to the Senate for additional review.
The measure attempts to permanently extend the tax cuts enacted during Trump's first term while also introducing new tax breaks, such as tip and overtime pay exemptions. It also proposes significant changes to social programs, including stronger work requirements for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), as well as the elimination of key clean energy tax credits. Furthermore, the plan includes additional funding for border security and defense spending.
How the Proposed Voucher Program Would Work
The plan aims to launch a $5 billion annual scheme that uses the federal tax law to incentivize donations to Scholarship Granting Organizations (SGOs). Individuals who donate to these SGOs will receive a dollar-for-dollar federal tax credit, making this incentive more generous than that for regular charitable gifts. According to NPR, the SGOs would then distribute the monies to families as scholarships to cover a variety of educational expenses such as private school tuition, textbooks, and homeschooling costs.
Senator Bill Cassidy (R-La.), who supports the bill, noted, "Giving parents the ability to choose the best education for their child makes the American Dream possible."
Support and Opposition
Supporters claim that the initiative empowers families, particularly those in low-performing school systems, by providing educational options. They see it as a way to promote "education freedom" and give parents greater influence over their children's education.
However, critics are concerned that the idea will shift resources away from public schools and instead benefit rich donors through tax breaks. Sasha Pudelski of the AASA, the School Superintendents Association, cautioned that the idea "is opening the door even wider to what has already plagued voucher programs around the country, which is rampant waste, fraud, and abuse."
Furthermore, opponents argue that the initiative could result in massive tax avoidance. Donors might give valued stock to SGOs, avoiding capital gains taxes while obtaining the full tax benefit. This approach could result in significant tax breaks for rich individuals.
Potential Implications for Public Education
Public education groups, such as the Campaign for Children , worry that the proposal could damage the public school system by shifting funds to private institutions. They argue that this transition will worsen existing inequities and lower the quality of education for the majority of pupils in public schools. In an OSBA report, the National Coalition for Public Education noted that "rather than focusing on private school vouchers that benefit only a small number of students, lawmakers must consider solutions that advance opportunity for the 90% of U.S. students who attend public schools."
The idea is still being considered in the Senate and has not been signed into law. Its inclusion in the budget reconciliation procedure allows it to pass with a simple majority, eliminating the requirement for bipartisan support. However, the law is opposed by Democrats and certain education advocacy groups, making its future questionable.
As the debate continues, the outcome of this proposal may have far-reaching consequences for the United States' school system, potentially transforming the landscape of educational funding and access across the country.
