All Roll Calls
Yes: 1,574 • No: 599
South CarolinaS 0062126th General Assembly (2025-2026)SenateWALLET
AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 59-8-110, RELATING TO DEFINITIONS CONCERNING THE EDUCATION SCHOLARSHIP TRUST FUND, SO AS TO REVISE DEFINITIONS; BY AMENDING SECTION 59-8-115, RELATING TO SCHOLARSHIP APPLICATION CRITERIA AND PROCEDURES, SO AS PROVIDE REQUIREMENTS CONCERNING PRIORITY AND GENERAL APPLICATIONS, TO PROVIDE CERTAIN EXEMPTION ACKNOWLEDGEMENT REQUIREMENTS FOR NONPUBLIC EDUCATION SERVICE PROVIDERS, AMONG OTHER THINGS; BY AMENDING SECTION 59-8-120, RELATING TO THE ESTABLISHMENT OF THE SOUTH CAROLINA EDUCATION SCHOLARSHIP TRUST FUND, SO AS TO RECHARACTERIZE ITS CORPUS AND REVISE ITS USAGES, TO ESTABLISH A TRUSTEE APPOINTMENT FOR THE FUND AND TO PROVIDE THE QUALIFICATIONS AND DUTIES OF THE TRUSTEE, AND TO ESTABLISH SCHOLARSHIP ALLOCATION AMOUNTS AND ACCOUNTABILITY MEASURES; BY AMENDING SECTION 59-8-125, RELATING TO SCHOLARSHIP FUND PAYMENTS, SO AS TO PROVIDE FOR THE ROLE OF THE TRUSTEE IN MAKING SUCH PAYMENTS, TO PROVIDE FOR TRUSTEE PAYMENTS, AND TO PROVIDE TERMS FOR A CONTRACTUAL RELATIONSHIP FOR THE PERFORMANCE OF THE TRUSTEE'S DUTIES, AMONG OTHER THINGS; BY AMENDING SECTION 59-8-130, RELATING TO SCHOLARSHIP ELIGIBILITY TERMINATION NOTICE REQUIREMENTS, SO AS TO RESTATE THE SECTION; BY AMENDING SECTION 59-8-135, RELATING TO SCHOLARSHIP PARTICIPANT NUMBER LIMITATIONS, SO AS TO REVISE THE LIMITATIONS, ENABLE INCREASES, AND REMOVE A PERIODIC PROGRAM ELIGIBILITY AND USE REVIEW REQUIREMENT; BY AMENDING SECTION 59-8-140, RELATING TO EDUCATION SERVICE PROVIDER PROGRAM PARTICIPATION REQUIREMENTS, SO AS TO INCLUDE ELIGIBLE SCHOOLS, AND TO REMOVE CERTAIN ADMINISTRATIVE REQUIREMENTS OF THE STATE DEPARTMENT OF EDUCATION; BY AMENDING SECTION 58-8-145, RELATING TO MISCELLANEOUS DEPARTMENT ADMINISTRATIVE REQUIREMENTS, SO AS TO REMOVE A PROVISION ALLOWING THE DEPARTMENT TO CONTRACT WITH QUALIFIED ORGANIZATIONS FOR RELATED ASSISTANCE; BY ADDING SECTION 59-8-147 SO AS TO PROVIDE THE DEPARTMENT SHALL POST CERTAIN INFORMATION ABOUT THE PROGRAM ON ITS INTERNET WEBSITE, TO PROVIDE REQUIREMENTS OF THE DEPARTMENT CONCERNING THE APPLICATION PROCESS, AND TO PROVIDE A GRACE PERIOD FOR APPLICANTS TO CORRECT MINOR ERRORS; BY AMENDING SECTION 59-8-150, RELATING TO EDUCATION SERVICE PROVIDER REQUIREMENTS, SO AS TO EXPAND EMPLOYEE CRIMINAL BACKGROUND CHECKS, TO REVISE EMPLOYEE SURETY BOND REQUIREMENTS, TO REVISE ASSESSMENT REQUIREMENTS, AND TO REMOVE A PROVISION AUTHORIZING THE DEPARTMENT TO PROMULGATE RELATED REGULATIONS, AMONG OTHER THINGS; BY AMENDING SECTION 59-8-160, RELATING TO THE EDUCATION SCHOLARSHIP TRUST FUND REVIEW PANEL, SO AS TO RESTATE THE SECTION; BY AMENDING SECTION 59-8-165, RELATING TO DISTRICT-LEVEL STUDENT TRANSFER POLICIES, SO AS TO REPLACE THE EXISTING LANGUAGE WITH PROVISIONS CONCERNING INTERDISTRICT TRANSFERS; BY AMENDING SECTION 59-8-170, RELATING TO AN EXEMPTION FROM HIGH SCHOOL LEAGUE TRANSFER ELIGIBILITY RULES FOR INTERDISTRICT TRANSFER SCHOLARSHIP STUDENTS, SO AS TO MAKE THE PROVISION APPLICABLE TO SCHOLARSHIP AND NONSCHOLARSHIP STUDENTS, AND TO PROVIDE SUBSEQUENT TRANSFERS ARE SUBJECT TO HIGH SCHOOL LEAGUE ELIGIBILITY RULES; AND BY AMENDING SECTION 59-150-350, RELATING TO SCHOLARSHIPS DESIGNATED TO RECEIVE LOTTERY FUNDING, SO AS TO INCLUDE THE SOUTH CAROLINA EDUCATION SCHOLARSHIP TRUST FUND.
Sponsored By: Greg Hembree (Republican)
Signed by Governor
Summary
Education Scholarship Trust Fund
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Bill Overview
Analyzed Economic Effects
14 provisions identified: 8 benefits, 0 costs, 6 mixed.
How much and when your scholarship pays
For the 2025–2026 school year, each approved student gets $7,500 in a scholarship account. In later years, the per‑student amount rises by the same percent as state per‑pupil funding unless the budget sets a different limit. The Department creates your child’s online account within 30 days of approval. The trustee deposits money each quarter, with the first payment by July 31. Before each deposit, the Department confirms the student is not enrolled full time in their resident public school.
Easier district transfers and sports eligibility
The Department sets model rules for interdistrict transfers. Districts must adopt policies that follow the model, post available seats each year, and state their transportation rules; they may share transport costs. Districts have 120 days to adopt policies once the model is published (60 days to review existing ones), or the Department can withhold administrative funding until they comply. Students who make their first transfer in grades 6–8 or 9–11 are immediately eligible to play school sports; later transfers follow High School League rules.
Testing, score reports, and public results
Full‑time providers must give required tests for grades 3–8 and 9–12 (or approved alternatives) and report graduation data. Parents get written score reports with comparisons. The Department gives providers access and training and pays testing costs, so students and providers are not charged. Providers send results to the Department each year, and the Department shares individual results with the Education Oversight Committee under privacy rules. The Committee posts learning gains and graduation rates online by group and issues school reports when size rules are met.
How the scholarship fund is managed
The Education Scholarship Trust Fund is a separate trust, not state debt, and its money can only be used for this program. The State Superintendent appoints a qualified, non‑government trustee, sets a contract and fees, and may remove the trustee. The trustee holds and disburses money as parents direct and must protect applicant and student information; tax‑return data and student records stay confidential. A 10‑member review panel chaired by the Governor advises the Department.
Lottery dollars can fund scholarships
The Education Scholarship Trust Fund is added to the list of programs that can receive Education Lottery money. The General Assembly decides each year how much lottery funding to allocate.
Anti-fraud rules for scholarship money
Providers cannot refund or rebate scholarship funds to parents or students. The Department performs random audits each year of providers, the fund, and accounts. The Department may refer serious misuse to law enforcement. If an account is substantially misused, the Department can end that student’s scholarship.
Rules to use and keep scholarship funds
You must pay through the program’s online system; parents cannot get reimbursed for out‑of‑pocket costs. Unused money rolls over to next year if the student reapplies and stays eligible. Each child can have only one account. If instruction stops and does not restart within 30 days, or an account is suspended for misuse, remaining funds go back to the program. Payments also end if a prohibited activity occurs, the student returns to their resident public school, is no longer eligible, or graduates or turns 22. Up to 5% of the fund may be used each year for oversight and trustee fees.
Who can get state education scholarships
Your child must live in South Carolina and be at least 5 by September 1. For 2025–2026, household income must be at or below 300% of the federal poverty guideline. For 2026–2027 and later, the income cap is 500%. Students in the Exceptional Needs credit program cannot also get this scholarship. The program serves up to 10,000 students in 2025–2026 and at least 15,000 a year after that.
New rules for schools and providers
Providers must apply to join the program; independent schools must be in South Carolina and teach state‑diploma courses. All providers must follow health and safety laws, have any required occupancy permit, and run criminal background checks; non‑accredited providers must submit background‑check proof on first application. Providers expecting $50,000 or more in program payments need a surety bond, and after year one a bond is required only if last year’s total exceeded $50,000. Board members owe a fiduciary duty to the provider, and people with a financial tie to a provider cannot serve on listed boards or the review panel; violations bring a two‑year ban and repayment.
Provider compliance and appeal rights
Returning providers must reapply each year and certify they still meet rules. Providers that give required tests must send last year’s student scores to the Department; failure to submit individual scores leads to removal. The Department may bar providers that break accountability rules or do not deliver paid services, and must notify families; barred providers can appeal under the Administrative Procedures Act. Providers denied initial approval may also seek a contested case hearing at the administrative law court.
Easier applications and provider info online
The Department posts the scholarship application clearly on its main website and offers help during the process. If a mostly complete application has small errors, you get two weeks to fix them and keep your place while you do. The Department sends families annual eligibility information and approved‑use instructions, and posts a searchable list of approved providers with contact details.
How your scholarship account is managed
Each scholarship student has an individual account for approved education costs. The Department administers the accounts. The State Superintendent appoints a trustee to hold and pay out the funds. The trustee manages the money and makes payments as the law allows.
Safety and ethics rules for providers
Providers in the program must not unlawfully discriminate by race, color, or national origin. Staff in covered roles at online providers are mandatory reporters and must complete state training. Anyone convicted of a financial crime cannot serve in a leadership role at a provider. Legislators and their immediate family may not have a financial interest in a provider, though they can still qualify as recipients under the program’s rules.
Which schools can take scholarship funds
An eligible school must be in South Carolina, enroll the student full time, and opt in. It can be a public school or a nonprofit independent school; charter schools cannot join. A school with a legislator or immediate family holding a direct financial interest cannot join. Nonpublic providers are not government agents. The state cannot regulate their programs beyond this law, and they do not have to change their creed, admissions, or curriculum to accept payments.
Sponsors & Cosponsors
Sponsor
Greg Hembree
Republican • Senate
Cosponsors
Lawrence K. "Larry" Grooms
Republican • Senate
Rex F. Rice
Republican • Senate
Roll Call Votes
House vote • 5/1/2025
(Education Scholarship Trust Fund)Concur in Senate Amendments
Yes: 73 • No: 32
Senate vote • 4/29/2025
(Education Scholarship Trust Fund)to lay on the table Amendment No. 11
Yes: 31 • No: 12
Senate vote • 4/29/2025
(Education Scholarship Trust Fund)to lay on the table Amendment No. 13
Yes: 31 • No: 11
Senate vote • 4/29/2025
(Education Scholarship Trust Fund)to lay on the table Amendment No. 9
Yes: 29 • No: 12
Senate vote • 4/29/2025
(Education Scholarship Trust Fund)to lay on the table Amendment No. 7
Yes: 29 • No: 12
Senate vote • 4/29/2025
(Education Scholarship Trust Fund)to lay on the table Amendment No. 12
Yes: 29 • No: 12
Senate vote • 4/29/2025
(Education Scholarship Trust Fund)to lay on the table Amendment No. 8
Yes: 28 • No: 13
Senate vote • 4/24/2025
(Education Scholarship Trust Fund)to lay on the table Amendment number RFH-2
Yes: 21 • No: 10
Senate vote • 4/16/2025
(Education Scholarship Trust Fund)to adopt Amendment number RFH-1
Yes: 29 • No: 13
House vote • 2/27/2025
(Education Scholarship Trust Fund)Passage of Bill
Yes: 80 • No: 32
House vote • 2/26/2025
(Education Scholarship Trust Fund)Table Amendment 7 Amendment number 7
Yes: 76 • No: 34
House vote • 2/26/2025
(Education Scholarship Trust Fund)Adopt Amendment 15 Amendment number 15
Yes: 109 • No: 0
House vote • 2/26/2025
(Education Scholarship Trust Fund)Adopt Amendment 1 Amendment number 1
Yes: 82 • No: 32
House vote • 2/26/2025
(Education Scholarship Trust Fund)Table Amendment 14 Amendment number 14
Yes: 77 • No: 37
House vote • 2/26/2025
(Education Scholarship Trust Fund)Table Amendment 12 Amendment number 12
Yes: 76 • No: 36
House vote • 2/26/2025
(Education Scholarship Trust Fund)Table Motion to Invoke Rule 3.9
Yes: 90 • No: 9
House vote • 2/26/2025
(Education Scholarship Trust Fund)Table Amendment 8 Amendment number 8
Yes: 77 • No: 35
House vote • 2/26/2025
(Education Scholarship Trust Fund)Table Amendment 13 Amendment number 13
Yes: 57 • No: 44
House vote • 2/26/2025
(Education Scholarship Trust Fund)Passage of Bill
Yes: 79 • No: 38
House vote • 2/26/2025
(Education Scholarship Trust Fund)Table Amendment 11 Amendment number 11
Yes: 75 • No: 37
House vote • 2/26/2025
(Education Scholarship Trust Fund)Table Amendment 6 Amendment number 6
Yes: 78 • No: 37
Senate vote • 2/4/2025
(Education Scholarship Trust Fund)3rd Reading
Yes: 31 • No: 9
Senate vote • 1/30/2025
(Education Scholarship Trust Fund)to lay on the table Amendment number 39
Yes: 31 • No: 13
Senate vote • 1/30/2025
(Education Scholarship Trust Fund)2nd Reading
Yes: 43 • No: 0
Senate vote • 1/30/2025
(Education Scholarship Trust Fund)2nd Reading
Yes: 32 • No: 12
Senate vote • 1/30/2025
(Education Scholarship Trust Fund)to lay on the table Amendment number 42
Yes: 26 • No: 18
Senate vote • 1/30/2025
(Education Scholarship Trust Fund)to lay on the table Amendment number 41
Yes: 32 • No: 10
Senate vote • 1/29/2025
(Education Scholarship Trust Fund)to adopt Amendment number 14
Yes: 30 • No: 11
Senate vote • 1/29/2025
(Education Scholarship Trust Fund)to lay on the table Amendment number 27
Yes: 30 • No: 11
Senate vote • 1/28/2025
(Education Scholarship Trust Fund)to lay on the table Amendment number 10
Yes: 26 • No: 15
Senate vote • 1/16/2025
(Education Scholarship Trust Fund)to adopt Amendment number 1
Yes: 37 • No: 2
Actions Timeline
Act No. 11
5/12/2025legislatureEffective date See Act for Effective Date
5/12/2025legislatureSigned By Governor
5/7/2025GovernorRatified R 27
5/6/2025legislatureRoll call Yeas-73 Nays-32
5/1/2025HouseConcurred in Senate amendment and enrolled
5/1/2025HouseScrivener's error corrected
4/29/2025legislatureReturned to House with amendments
4/29/2025SenateHouse amendment amended
4/29/2025SenateScrivener's error corrected
4/23/2025legislatureScrivener's error corrected
4/22/2025legislatureRoll call Ayes-29 Nays-13
4/16/2025SenateHouse amendment amended
4/16/2025SenateRoll call Yeas-80 Nays-32
2/27/2025HouseRead third time and returned to Senate with amendments
2/27/2025HouseRoll call Yeas-79 Nays-38
2/26/2025HouseRead second time
2/26/2025HouseAmended
2/26/2025HouseRequests for debate-Rep
2/25/2025HouseCommittee report: Favorable with amendment Education and Public Works
2/20/2025HouseReferred to Committee on Education and Public Works
2/6/2025HouseIntroduced and read first time
2/6/2025HouseScrivener's error corrected
2/4/2025legislatureRoll call Ayes-31 Nays-9
2/4/2025SenateRead third time and sent to House
2/4/2025Senate
Bill Text
Introduced
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