US News
School Choice Tax Credit Remains in “Big, Beautiful Bill”
|By
Matis Glenn1 MIN READ
Published Jul. 1, 2025, 12:54 PM
US News

A key federal school choice initiative, a permanent and unlimited scholarship tax credit, successfully navigated the Senate after twice being stricken from President Donald Trump’s “Big, Beautiful Bill.”
Under the bill, taxpayers would receive a $1,700 tax credit for donations to organizations that fund tuition and other school expenses.
The measure underwent revisions to comply with Senate parliamentarian rulings.
Agudath Israel of America, which lobbied tirelessly on behalf of the bill, hailed the Senate’s decision.
Rabbi A.D. Motzen, Agudath Israel of America’s National Director of Government Affairs, stated, “Thanks to Senator Ted Cruz and Senate champions, the report of its demise was greatly exaggerated. The Senate saved school choice for American families.”
The revised proposal establishes a dollar-for-dollar tax credit for donors contributing to nonprofit Scholarship Granting Organizations (SGOs). These SGOs will then distribute scholarships to eligible students to cover qualified educational expenses.
The program is designed to benefit a broad range of families, with income thresholds set above $300,000 in many areas.
Agudah anticipates this will generate hundreds of millions of dollars in K-12 scholarships, including for those seeking to attend Jewish schools.
The bill now proceeds to the House of Representatives for a vote before it can be sent to the President for his signature.
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