PRIA Logo™
119-hr-3519119th CongressWALLET

Universal School Choice Act

Sponsored By: Representative Owens, Burgess [R-UT-4]

Introduced

Summary

Tax-credit scholarships for K–12 education. The Universal School Choice Act would create federal tax credits that fund scholarships for elementary and secondary education expenses through nonprofit scholarship-granting organizations.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 1 costs, 0 mixed.

Tax credits for K-12 scholarship donations

If you donate to an eligible scholarship group, you would get a federal tax credit instead of a deduction. Individuals could claim up to what they give, capped at the greater of 10% of AGI or $5,000 each year. Corporations could claim up to 5% of taxable income. Unused credits could carry forward for up to five years and would count for AMT. You could not also deduct the same gift, and credits would only be available within national and State caps. This would apply to taxable years ending after December 31, 2025.

Nationwide cap on credit-eligible donations

Total donations that can get credits would be capped at $10 billion per year starting in 2026. If 90% or more is used in a year, the next year’s cap would rise by 5%, and the cap would not fall year to year. The Secretary would split the cap among States, using 20% by each State’s share of kids ages 5–17 and 80% by that share of kids in poverty; each State would get at least 0.5%. Taxpayers would have to pick a distribution State when giving, and that choice would bind how funds are distributed.

New rules for K-12 scholarship groups

Scholarship groups would have to be 501(c)(3) charities, keep donations in separate accounts, and fund at least two students who do not all attend the same school. Donors could not earmark a gift for one child. For credited donations, groups would prioritize prior-year students, then siblings, then families under 500% of the poverty line, and would verify income using listed documents. Groups would need annual independent audits and to distribute almost all receipts by a set deadline; up to 10% for admin costs is presumed reasonable. If a group misses the distribution rule, later gifts to it would not qualify for the credit. These rules would apply to taxable years ending after December 31, 2025.

K-12 scholarships would be tax-free

If your child gets a scholarship from an eligible group, the money would not count as taxable income. This would apply to amounts received after December 31, 2025. It would cover only qualified K-12 education costs under the bill’s rules.

Limits government control over scholarship groups

Government officials would not be allowed to control or treat scholarship groups as government actors under this program. They could not set rules that exclude or disfavor private or religious schools. Parents of scholarship students could step into court to defend the law.

Sponsors & CoSponsors

Sponsor

Owens, Burgess [R-UT-4]

UT • R

Cosponsors

  • Rep. Donalds, Byron [R-FL-19]

    FL • R

    Sponsored 5/20/2025

  • Rep. Fine, Randy [R-FL-6]

    FL • R

    Sponsored 9/15/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation