UtahH.B. 4672026 General SessionHouseWALLET

Utah Fits All Scholarship Program Modifications

Sponsored By: Candice B. Pierucci (Republican)

Signed by Governor

EducationK-12 EducationState Board of Education

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 10 benefits, 1 costs, 4 mixed.

Students get timely access to scholarship money

Annual awards provide up to $8,000 for private school students, subject to program funding. Home-based students get up to $4,000 at ages 5–11 or $6,000 at ages 12–18, measured on September 1. The state sends two equal payments by July 31 and December 31, unless another schedule is authorized. The program must make funds available to students within five business days after the state board provides them. All interest earned on scholarship funds or investments must pay scholarship expenses; the law sets no individual share of interest.

Families must prove age, residency, and income

Beginning May 6, 2026, students must not have reached age 19 before September 1 of the school year. Applicants and renewing students must provide current-calendar-year proof that their main home is in Utah. The program checks household income, not just one person's income. With a parent's written consent, the Utah State Tax Commission must provide that parent's tax information within 10 business days. Business-income records include the latest filed business returns, year-to-date profit and loss statements, and owner draw or distribution records. Families awaiting prior-year tax filings can use temporary approval records until the required current-year records are provided.

Scholarship priority favors returning students and siblings

First priority goes to students who used scholarship funds last year and submitted the required education report or assessment. Next come eligible siblings of students using an account now or who used one in the previous school year. Another tier requires no scholarship use last year, household income at or below 300% of the federal poverty level, and a household partial award that left out the applicant. Lotteries decide awards within tiers when money runs short and awards left after the priority tiers. Lower-priority applicants have less access when funds are limited. The manager cannot bypass these rules to favor relatives of a contracted entity's employees or officers.

Families can switch providers and recover funds

Students can change qualifying providers at any time; the manager may divide funds based on enrollment or service time. Beginning May 6, 2026, a withdrawing student's tuition refund must return through the manager to the scholarship account. A refund is due only when the school's standard refund policy provides one. Schools must disclose this refund rule beginning in the 2026–2027 school year. Repaid unapproved expenses must be credited back within 30 days, except when the student or parent is convicted of scholarship fraud.

Scholarship families get clearer, equal school prices

Beginning in the 2026–2027 school year, participating private schools must maintain working websites with tuition and extra school-year fees. They must also post accessible refund and reimbursement policies, administrative contacts, and the school's physical address. Schools with 150 or more students must give scholarship students the same tuition, fees, and refund terms as other students in the same programs or grades. Their disclosures to prospective students must state that these charges and terms are identical.

Students can challenge lost scholarship eligibility

Before removing eligibility, the manager must verify the student's status and provide a way to review disputed decisions. It must promptly restore eligibility when it finds an error. A student must regain eligibility after moving to a different parent or no longer living with the parent whose actions caused disqualification or suspension. The manager must keep detailed records and regularly report status changes to the state board.

Parents owe no state tax on scholarships

Utah Fits All funds sent from the program's restricted account to a student's scholarship account are not the parent's state taxable income. This protects parents from state income tax on those scholarship funds. The rule does not establish how federal taxes treat the funds.

Scholarship misuse stops payments but allows correction

For intentional or substantial misuse or program violations, the manager must use fair suspension procedures and provide written notice. Payments stop after notice, but families get 10 business days to correct the problem before disqualification. Evidence of fraud must go to the Utah Attorney General for collection or criminal investigation. The manager must block providers that substantially or intentionally misstate overpayment information, fail to refund overpayments on time, or routinely fail to deliver promised services. Reimbursement is barred for intentional or substantial misstatements of cost or educational purpose, or purchases not used exclusively by the student. The manager must notify students when it stops a disbursement or refuses reimbursement.

Scholarship spending options come with limits

Scholarship money pays only qualifying costs of educating the student, not noneducational rehabilitation, most travel, or a parent's teaching time. Families can seek reimbursement for otherwise eligible purchases from providers outside the approved provider list. A receipt must show the cost, item or service, and provider, and the manager must find an educational purpose. The provider cannot be the parent acting solely as the provider for their own home-based scholarship student. The expense must have occurred while the student was not enrolled in public school.

School safeguards also limit scholarship choices

Institutions passing public school enrollment-based funding to families do not qualify as private schools for this program. The exclusion also covers specified shared ownership or leadership ties and structures designed to evade it. Beginning May 6, 2026, schools with 150 or more students seeking scholarship funds must submit an independent accountant's audit or agreed-upon review from the prior 12 months. The review must address financial stability and enough working capital to operate. A going-concern audit warning, or a review finding inadequate working capital for the first full operating year, makes the school ineligible.

Families get deadlines and sibling award choices

Annual applications open March 1 for current scholarship students and April 1 for new students, and close May 1. Decisions are due within 30 days after applications close, and the acceptance deadline must be before July 1. The manager processes applications from one household together, using the household's priority tier. When money cannot cover every child, families get at least five business days to choose a partial award or waitlist all children. Children left out of an accepted partial award keep their original waitlist priority.

Parents get faster approved scholarship reimbursements

The program manager must process a parent's reimbursement request within 10 business days after approving the expense. This is a processing deadline, not a guarantee that every request qualifies. It does not change the amount available for reimbursement.

Parents get shopping choices and approval deadlines

Parents can request expense preapproval before spending through the portal, email, or telephone. Within seven business days, the manager must approve, request documents, or deny with an explanation, and keep decision records. If the manager runs a marketplace, prices must reflect fair market value and families cannot be forced to shop there. Parents can buy similar items elsewhere and seek reimbursement, including used educational materials, supplies, or equipment from third parties. The marketplace itself cannot resell used or returned goods.

Scholarship families avoid fees and get support

The program manager and financial administrator cannot charge a scholarship account application fee. Contracted administrators also cannot charge eligible students processing fees or pass along third-party fees tied to scholarship funds. The manager must staff its call center for regular and peak enrollment periods. It must plan for growth, regularly check capacity, and improve service using parent feedback.

Scholarship students gain public school activity access

Beginning May 6, 2026, scholarship students can join public school sports and activities on the same basis as home-school or private-school students. Public school agencies cannot deny participation solely because a student has a scholarship. They also cannot impose stricter participation requirements than those applied to home-school or private-school students.

Sponsors & Cosponsors

Sponsor

  • Candice B. Pierucci

    Republican • House

Cosponsors

  • Kirk A. Cullimore

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 172 • No: 26

House vote • 3/6/2026

House/ concurs with Senate amendment

Yes: 59 • No: 7

Senate vote • 3/6/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote • 3/6/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote • 3/6/2026

Senate/ substituted

Yes: 0 • No: 0

Senate vote • 3/6/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 19 • No: 10

Senate vote • 3/2/2026

Senate Comm - Substitute Recommendation

Yes: 3 • No: 0

Senate vote • 3/2/2026

Senate Comm - Favorable Recommendation

Yes: 5 • No: 1

House vote • 2/23/2026

House/ passed 3rd reading

Yes: 60 • No: 6

House vote • 2/17/2026

House Comm - Substitute Recommendation

Yes: 14 • No: 0

House vote • 2/17/2026

House Comm - Favorable Recommendation

Yes: 12 • No: 2

Actions Timeline

  1. Governor Signed

    3/19/2026
  2. House/ to Governor

    3/16/2026House
  3. House/ received enrolled bill from Printing

    3/16/2026House
  4. House/ enrolled bill to Printing

    3/12/2026House
  5. Enrolled Bill Returned to House or Senate

    3/12/2026
  6. Draft of Enrolled Bill Prepared

    3/10/2026
  7. Bill Received from House for Enrolling

    3/10/2026
  8. House/ signed by Speaker/ sent for enrolling

    3/7/2026House
  9. House/ received from Senate

    3/7/2026House
  10. Senate/ to House

    3/6/2026Senate
  11. Senate/ signed by President/ returned to House

    3/6/2026Senate
  12. Senate/ received from House

    3/6/2026Senate
  13. House/ to Senate

    3/6/2026House
  14. House/ concurs with Senate amendment

    3/6/2026House
  15. House/ placed on Concurrence Calendar

    3/6/2026House
  16. House/ received from Senate

    3/6/2026House
  17. Senate/ to House with amendments

    3/6/2026Senate
  18. Senate/ passed 2nd & 3rd readings/ suspension

    3/6/2026Senate
  19. Senate/ substituted

    3/6/2026Senate
  20. Senate/ uncircled

    3/6/2026Senate
  21. Senate/ circled

    3/6/2026Senate
  22. Senate/ 2nd & 3rd readings/ suspension

    3/6/2026Senate
  23. Senate/ Rules to 2nd Reading Calendar

    3/5/2026Senate
  24. Senate/ 2nd Reading Calendar to Rules

    3/4/2026Senate
  25. Senate/ placed on 2nd Reading Calendar

    3/3/2026Senate

Bill Text

  • Enrolled

    3/12/2026

  • Substitute #5

    3/4/2026

  • Substitute #4

    3/2/2026

  • Substitute #3

    2/17/2026

  • Substitute #2

    2/16/2026

  • Substitute #1

    2/5/2026

  • Introduced

    2/3/2026

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