Rep. Grijalva Helps Introduce Keep Public Dollars in Public Schools Act

WASHINGTON, D.C. — Congresswoman Adelita S. Grijalva (AZ-07) today joined Representatives Gwen Moore, Suzanne Bonamici, Mark Pocan, and Maxwell Frost in introducing the Keep Public Dollars in Public Schools Act , legislation to repeal the federal private school voucher tax credit created under the One Big Beautiful Bill Act and ensure taxpayer dollars are invested in public schools. The Senate version of this legislation has been introduced by Senator Mark Kelly ( S.4297 ).
The legislation comes as Arizona continues to serve as a cautionary example of the consequences of expanding private school voucher programs without adequate oversight. Arizona's universal voucher program now costs taxpayers more than $1 billion annually and has been rife with allegations of waste, fraud, and abuse. In one of many cases, two out-of-state individuals pleaded guilty to creating dozens of fictitious " ghost students " and using forged documents to fraudulently obtain more than $110,000 in taxpayer-funded voucher dollars. State audits and reporting have also documented voucher funds being used for questionable purchases, such as trips to Disneyland , diamond rings, and lingerie .
"Arizona's misguided experiment with universal private school vouchers should serve as a warning to the rest of the country. We've watched public education dollars diverted into a system plagued by abuse – from fraudulent 'ghost student' schemes to reports of taxpayer-funded purchases of luxury goods and vacations," said Rep. Grijalva. "The federal government should not replicate this failed program on a national scale. The Keep Public Dollars in Public Schools Act will help ensure federal taxpayer dollars strengthen the public schools that serve the overwhelming majority of America's children, not subsidize privatization schemes rife with fraud."
Public schools educate approximately 90 percent of students in the United States and are required to comply with federal civil rights laws, accountability standards, transparency requirements, and protections for students with disabilities. Private schools, however, are not subject to the same standards.
“Arizona ranks nearly last in the nation in per-student funding, and we see the consequences every day — with schools closing and low pay pushing great educators out of the classroom. We can’t afford to divert more public dollars into private hands,” said Marisol Garcia, President of the Arizona Education Association . “Arizona’s voucher program — which is a model for the Trump administration’s national voucher program — has been a disaster for our state. Arizona educators are proud to see our own Congresswoman Grijalva and Senator Kelly lead the fight to keep public funds in public schools, and we look forward to working with them to get this bill passed into law."
The tax credit provides up to $1,700 annually to individual taxpayers for donations to an eligible scholarship granting organizations (SGO) to fund private K–12 education expenses through “scholarships.” This new tax credit created a federal entitlement for private school subsidy programs while reducing federal revenues available for public education, special education, teacher support, school nutrition, and other critical priorities.
The Joint Committee on Taxation estimated that this new program is projected to divert more than $4 billion of tax revenue away from traditional education programs, although the loss of revenue will likely be much higher. This risks accelerating disinvestment in public schools, particularly in rural communities and underserved areas where private school alternatives are limited or nonexistent.
The Keep Public Dollars in Public Schools Act of 2026 would fully repeal this tax credit and restore the longstanding principle that federal education policy should prioritize strong, accessible, and accountable public schools for every child.
You can see a video statement here .