# 119-hr-10801: School Freedom Act of 2026

119-hr-10801, School Freedom Act of 2026, is a 119th Congress bill sponsored by Rep. Mace, Nancy [R-SC-1] (R-SC); status introduced; PRIA reads it as touching household money (as of 2026-10-28).

- Canonical: https://policyrisk.com/legislation/119-hr-10801
- As of: 2026-10-28
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-10801
- Congress: 119
- Title: School Freedom Act of 2026
- Status: introduced
- Introduced: 2026-10-13
- Sponsor: Rep. Mace, Nancy [R-SC-1] (R-SC)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-10-28

## Summary

**This bill would redirect federal K–12 grant funding into Treasury‑managed School Freedom Accounts for individual students** and would terminate covered federal elementary and secondary education programs by June 30, 2027. - Families and parents would get a per‑pupil federal deposit into a School Freedom Account starting with the school year beginning July 1, 2027. Parents could use the accounts for private school tuition, homeschool curriculum, tutoring, technology, extracurriculars, testing, evaluations, and could add funds via a payment card or pre‑tax payroll deposits under IRC section 530B. - Children with disabilities would receive a $2,000 add‑on in 2027 that is indexed to inflation thereafter. SFA funds may pay for educational therapies, evaluations, assistive technology, and related services. - Covered federal K–12 grant programs would end and unobligated balances may be redirected to SFAs; if a parent does not notify or approve disbursement, federal SFA funds default to the local educational agency. SFAs convert to tax‑favored Higher Education and Skills Obtainment Funds at secondary completion or age‑out, and nonqualified HESOF withdrawals carry a 20% penalty for the first and 50% for subsequent withdrawals with possible criminal penalties after the third; Treasury must track deposits and the Government Accountability Office will report on implementation.

## Provisions PRIA read

- Who can open a school account: cost, high. If enacted, an individual would qualify for a School Freedom Account only if all four rules are met. The child must not have finished secondary school and must be eligible, or soon eligible, to attend elementary or secondary school. The child must be a U.S. citizen or national and must have at leas…
- Tax rules for school and college funds: mixed, high. If enacted, employer deposits to an employee‑parent's account would be excluded from the income of the employee and the beneficiary for tax years after enactment. Parents would be able to deduct contributions they make to a School Freedom Account. Distributions used only for qualified SFA or HESOF…
- Federal school deposits and terminations: mixed, high. If enacted, the bill would end covered federal elementary and secondary education programs by a date set by the Secretary of Education, not later than June 30, 2027. Beginning at enactment, no new federal appropriations could be made for those covered programs. For school years starting on or after…
- How families can spend school money: mixed, medium. If enacted, families could use School Freedom Account money for many education costs, including books, curriculum, technology, tutoring, private school tuition, public‑school classes, extracurriculars, and disability‑related therapies. Federal money that Treasury sends to a local educational agency…
- School accounts convert to college funds: mixed, medium. If enacted, Treasury would convert a student's School Freedom Account into a Higher Education and Skills Obtainment Fund when the student finishes secondary school or becomes too old for public school. Federal SFA money would become Federal HESOF money and parental SFA money would become parental H…

## Related bills

- 119-hr-4706: Protecting Our Farms and Homes from China Act
- 119-hr-3756: FISH Act of 2025
- 119-hr-833: Educational Choice for Children Act of 2025
- 119-hr-5457: Strengthening Agency Management and Oversight of Software Assets Act
- 119-hr-9298: Stopping Harmful and Outrageous Torts Act
- 119-hr-740: Veterans’ ACCESS Act of 2025

## Sources
- [119-hr-10801 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/10801)

## Related
- [119-hr-4706: Protecting Our Farms and Homes from China Act](https://policyrisk.com/legislation/119-hr-4706)
- [119-hr-3756: FISH Act of 2025](https://policyrisk.com/legislation/119-hr-3756)
- [119-hr-833: Educational Choice for Children Act of 2025](https://policyrisk.com/legislation/119-hr-833)
- [119-hr-5457: Strengthening Agency Management and Oversight of Software Assets Act](https://policyrisk.com/legislation/119-hr-5457)
- [119-hr-9298: Stopping Harmful and Outrageous Torts Act](https://policyrisk.com/legislation/119-hr-9298)
- [119-hr-740: Veterans’ ACCESS Act of 2025](https://policyrisk.com/legislation/119-hr-740)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-10801 (as of 2026-10-28).