Educational Choice for Children Act of 2025
Sponsored By: Representative Smith, Adrian [R-NE-3]
Introduced
Summary
Federal tax credits for donations to scholarship organizations would create matching tax incentives for individuals and corporations to fund K–12 scholarships. The bill targets households up to 300% of area median income, sets a $10 billion annual volume cap, and would exclude those scholarship amounts from gross income.
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 5 benefits, 0 costs, 1 mixed.
K-12 scholarships would not be taxed
If your child received a scholarship from an approved group for K–12 costs, that money would not count as taxable income. This would lower your federal taxes by about the scholarship amount times your tax rate. The rule would apply to amounts received after December 31, 2025.
Tax credit for individual education donations
You would be able to claim a new nonrefundable federal tax credit for money you give to approved scholarship groups. The credit would match your gift, up to the greater of 10% of your AGI or $5,000, and up to your assigned share of a national cap. It would be reduced by any state credit you claimed for the same gift, and you could not also take a charitable deduction for those dollars. Unused credit could carry forward up to five years. Gifts must be cash or marketable securities, and scholarships would fund K–12 expenses like tuition, materials, tutoring, tests, dual enrollment, and therapies. The credit would apply for tax years ending after December 31, 2025.
Corporate tax credit for education donations
Corporations would be able to claim a federal tax credit for donations to approved scholarship groups. The credit would equal donations, up to the smaller of the corporation’s allocated cap and 5% of its taxable income. Corporations could not also deduct the same expenses. The credit would start for tax years ending after December 31, 2025.
Rules for scholarship groups and spending
Scholarship groups would need to be 501(c)(3) charities, keep donations in separate accounts, and give scholarships to at least two students. Awards could cover only K–12 expenses, with income checks so families are at or below 300% of area median; prior recipients and siblings would get priority, and no gifts could be earmarked for a specific child. Groups would need yearly independent audits, have no felons on the board, and avoid self‑dealing. They would generally have to distribute nearly all receipts by the start of the third tax year, with a 10% admin safe harbor and up to 15% carryover. If a group failed these rules, new gifts to it the next year would not earn the federal credit.
Protects scholarship groups and school choice
Government would not be allowed to run or control scholarship groups or private and religious schools under this program. Officials could not exclude or penalize schools because they are religious, or discourage families from using scholarships at private or nonprofit schools. Parents of students who got scholarships would be able to intervene in court cases that challenge the law. These protections would take effect upon enactment.
Annual cap on credit-eligible donations
Total donations that can earn the federal credits would be capped at $10 billion a year starting in 2026. Ten percent would be split evenly across all states (and D.C.) for their residents and in‑state corporations. The rest would be allocated first‑come, first‑served based on when gifts are made, with no allocations after December 31. If 90% or more is used in a year, the next year’s cap would rise by 5%, and the cap could not drop below the prior year. Treasury would track usage in real time and publish the cap.
Sponsors & CoSponsors
Sponsor
Smith, Adrian [R-NE-3]
NE • R
Cosponsors
Rep. Owens, Burgess [R-UT-4]
UT • R
Sponsored 1/31/2025
Rep. Walberg, Tim [R-MI-5]
MI • R
Sponsored 1/31/2025
Kelly (PA)
PA • R
Sponsored 1/31/2025
Rep. Yakym, Rudy [R-IN-2]
IN • R
Sponsored 1/31/2025
LaHood
IL • R
Sponsored 1/31/2025
Rep. Letlow, Julia [R-LA-5]
LA • R
Sponsored 1/31/2025
Rep. Miller-Meeks, Mariannette [R-IA-1]
IA • R
Sponsored 1/31/2025
Rep. Donalds, Byron [R-FL-19]
FL • R
Sponsored 1/31/2025
Rep. Tenney, Claudia [R-NY-24]
NY • R
Sponsored 1/31/2025
Rep. Moore, Blake D. [R-UT-1]
UT • R
Sponsored 1/31/2025
Feenstra
IA • R
Sponsored 1/31/2025
Rep. Malliotakis, Nicole [R-NY-11]
NY • R
Sponsored 1/31/2025
Hern (OK)
OK • R
Sponsored 1/31/2025
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 1/31/2025
Rep. Fong, Vince [R-CA-20]
CA • R
Sponsored 1/31/2025
Rep. Carey, Mike [R-OH-15]
OH • R
Sponsored 1/31/2025
Hudson
NC • R
Sponsored 1/31/2025
Salazar
FL • R
Sponsored 1/31/2025
Franklin, Scott
FL • R
Sponsored 1/31/2025
Crenshaw
TX • R
Sponsored 1/31/2025
Rep. Wilson, Joe [R-SC-2]
SC • R
Sponsored 1/31/2025
Rose
TN • R
Sponsored 1/31/2025
Rep. Weber, Randy K. Sr. [R-TX-14]
TX • R
Sponsored 1/31/2025
Ciscomani
AZ • R
Sponsored 1/31/2025
Rep. Moolenaar, John R. [R-MI-2]
MI • R
Sponsored 1/31/2025
Allen
GA • R
Sponsored 1/31/2025
Rep. Dunn, Neal P. [R-FL-2]
FL • R
Sponsored 1/31/2025
Rep. Murphy, Gregory F. [R-NC-3]
NC • R
Sponsored 1/31/2025
Rep. Cline, Ben [R-VA-6]
VA • R
Sponsored 1/31/2025
Rep. Meuser, Daniel [R-PA-9]
PA • R
Sponsored 1/31/2025
Timmons
SC • R
Sponsored 1/31/2025
Rep. Bergman, Jack [R-MI-1]
MI • R
Sponsored 1/31/2025
Joyce (PA)
PA • R
Sponsored 2/4/2025
Rep. Hinson, Ashley [R-IA-2]
IA • R
Sponsored 2/4/2025
Turner (OH)
OH • R
Sponsored 2/4/2025
Kustoff
TN • R
Sponsored 2/5/2025
Rep. Finstad, Brad [R-MN-1]
MN • R
Sponsored 2/5/2025
Rep. Mackenzie, Ryan [R-PA-7]
PA • R
Sponsored 2/5/2025
Rep. Mann, Tracey [R-KS-1]
KS • R
Sponsored 2/6/2025
Rep. James, John [R-MI-10]
MI • R
Sponsored 2/7/2025
Rep. Steil, Bryan [R-WI-1]
WI • R
Sponsored 2/7/2025
Haridopolos
FL • R
Sponsored 2/10/2025
Stauber
MN • R
Sponsored 2/14/2025
Rep. Mace, Nancy [R-SC-1]
SC • R
Sponsored 2/24/2025
Rep. Smucker, Lloyd [R-PA-11]
PA • R
Sponsored 2/24/2025
Rep. Huizenga, Bill [R-MI-4]
MI • R
Sponsored 2/25/2025
Rep. Baumgartner, Michael [R-WA-5]
WA • R
Sponsored 3/3/2025
Rep. Calvert, Ken [R-CA-41]
CA • R
Sponsored 3/3/2025
Rep. Rulli, Michael A. [R-OH-6]
OH • R
Sponsored 3/3/2025
Lee (FL)
FL • R
Sponsored 3/3/2025
Rep. Harrigan, Pat [R-NC-10]
NC • R
Sponsored 3/4/2025
Rutherford
FL • R
Sponsored 3/10/2025
Biggs (SC)
SC • R
Sponsored 3/10/2025
Messmer
IN • R
Sponsored 3/11/2025
Rep. McCormick, Richard [R-GA-7]
GA • R
Sponsored 3/18/2025
Rep. Rouzer, David [R-NC-7]
NC • R
Sponsored 3/18/2025
Rep. Hurd, Jeff [R-CO-3]
CO • R
Sponsored 3/24/2025
Rep. Miller, Mary E. [R-IL-15]
IL • R
Sponsored 3/24/2025
Rep. Kim, Young [R-CA-40]
CA • R
Sponsored 3/24/2025
Bost
IL • R
Sponsored 3/24/2025
Kiley (CA)
CA • I
Sponsored 3/25/2025
McGuire
VA • R
Sponsored 3/27/2025
Rep. Guthrie, Brett [R-KY-2]
KY • R
Sponsored 3/27/2025
Rep. Bice, Stephanie I. [R-OK-5]
OK • R
Sponsored 3/27/2025
Rep. Smith, Christopher H. [R-NJ-4]
NJ • R
Sponsored 4/2/2025
Moore (NC)
NC • R
Sponsored 4/2/2025
Rep. Collins, Mike [R-GA-10]
GA • R
Sponsored 4/2/2025
Rep. Miller, Max L. [R-OH-7]
OH • R
Sponsored 4/7/2025
Balderson
OH • R
Sponsored 4/7/2025
Rep. Stefanik, Elise M. [R-NY-21]
NY • R
Sponsored 4/7/2025
Langworthy
NY • R
Sponsored 4/9/2025
LaLota
NY • R
Sponsored 4/9/2025
Sessions
TX • R
Sponsored 4/9/2025
Rep. Barrett, Tom [R-MI-7]
MI • R
Sponsored 4/14/2025
Rep. Crank, Jeff [R-CO-5]
CO • R
Sponsored 4/14/2025
Babin
TX • R
Sponsored 4/21/2025
Tiffany
WI • R
Sponsored 4/29/2025
Rep. Downing, Troy [R-MT-2]
MT • R
Sponsored 5/1/2025
Rep. Hamadeh, Abraham J. [R-AZ-8]
AZ • R
Sponsored 5/6/2025
Rep. Moran, Nathaniel [R-TX-1]
TX • R
Sponsored 5/6/2025
Barr
KY • R
Sponsored 5/6/2025
Rep. Burlison, Eric [R-MO-7]
MO • R
Sponsored 5/6/2025
Jordan
OH • R
Sponsored 5/14/2025
Webster (FL)
FL • R
Sponsored 5/15/2025
Onder
MO • R
Sponsored 5/15/2025
Rep. Houchin, Erin [R-IN-9]
IN • R
Sponsored 5/20/2025
Rep. Hill, J. French [R-AR-2]
AR • R
Sponsored 5/20/2025
Buchanan
FL • R
Sponsored 6/13/2025
Rep. Palmer, Gary J. [R-AL-6]
AL • R
Sponsored 7/2/2025
Rep. Wagner, Ann [R-MO-2]
MO • R
Sponsored 10/24/2025
Evans (CO)
CO • R
Sponsored 11/17/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov