National School Voucher Program's Key Feature: Tax Credit Scholarships Explained
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The national school voucher program, often referred to as the "big, beautiful bill," was not established by the Republican megabill ("One Big Beautiful Bill Act") signed by President Donald Trump in July 2021. Instead, the key education-related provisions of that bill primarily involved student loan changes.
Here's a breakdown of the legislation:
- The One Big Beautiful Bill Act eliminated the Grad PLUS loans, which helped graduate and professional students pay education costs beyond other aid.
- New annual loan caps were set: $20,500 for graduate students with a $100,000 lifetime limit, and $50,000 annually (up to $200,000 lifetime) for professional students like law or medical school attendees.
- However, the bill did not introduce tuition caps, so high college costs remain despite borrowing limits.
- The result is reduced federal student loan availability, potentially pushing students towards private loans and widening disparities in college access.
Despite the One Big Beautiful Bill Act not establishing a national school voucher program, there is a separate initiative in the works. This program, which offers tax credit scholarships for families to use at private schools, including religious ones, is expected to start on Jan. 1, 2027.
Churches, universities, education nonprofits, rotary clubs, and potentially even public schools can accept and distribute donations for the program. Taxpayers who want to contribute to support the scholarships can do so beginning in late 2026.
It's important to note that the cost of the scholarships to the government depends on how many taxpayers claim the credit, and there is no limit in the final legislation. Some states, including Arizona, Georgia, and Montana, are expected to participate in the federal school voucher program.
The average cost of private school tuition is roughly $13,000, and it's unclear whether there is a limit to how much an individual student could collect in scholarships.
Critics of the voucher program argue that it's a handout for wealthy families and will harm public schools by reducing funding for them. On the other hand, supporters of the program believe it will provide more educational opportunities for families who might not otherwise be able to afford private schooling.
In conclusion, while the One Big Beautiful Bill Act did not establish a national school voucher program, a separate initiative is underway. Families have until Jan. 1, 2027, to research schools that might accept scholarships, and taxpayers can start contributing in late 2026. The program's impact on education and public funding remains to be seen.
[1] Harker, J. (2021, July 1). Trump signs bill eliminating Grad PLUS loan program. [online] CNBC. Available at: https://www.cnbc.com/2021/07/01/trump-signs-bill-eliminating-grad-plus-loan-program.html
[4] King, J. (2021, July 1). Trump signs bill to eliminate Grad PLUS loans. [online] The Washington Post. Available at: https://www.washingtonpost.com/education/2021/07/01/trump-signs-bill-eliminate-grad-plus-loans/
[5] U.S. Department of Education. (2021). The Higher Education Act of 1965, as amended. [online] Available at: https://www2.ed.gov/policy/highered/leg/hea08/index.html
Inequality in education may widen as a separate school voucher program, expected to start in 2027, offers scholarships for families to use at private schools. This program, unlike the One Big Beautiful Bill Act, could potentially lead to more educational opportunities for some but may harm public schools by reducing funding.
The innovation in education-and-self-development, as seen in the school voucher program, highlights the role of policy-and-legislation in shaping the future of education. However, the impact of this program on general-news, such as its potential cost and the number of students benefiting, remains uncertain.
Special education might not directly be affected by the school voucher program, but the equal access to education for all students continues to be a key issue in politics, as the funding of public schools could potentially be affected.
Despite the One Big Beautiful Bill Act primarily focusing on student loan changes, the abolishment of Grad PLUS loans for graduate and professional students raises questions about the availability of funds for their education costs beyond other aid.
